USD/CHF 0.21% jumped sharply yesterday after ECB policy meeting. The pair hits high of 0.99979 at the time of writing. It has closed well above trend line resistance 0.9820 ( trend line joining 1.03350 and 1.00998) .it is currently trading around 0.9969.
ECB has kept its interest rates unchanged at 0.0% as widely expected and the marginal lending facility and deposit rate unchanged at 0.25% and -0.40% respectively.
The Central bank tapers Asset purchase program (AAP) to 30 billion euros slightly dovish than expected. The central bank puts a gentle dovish twist on assets purchase. It has reduced to half asset purchase and extended its duration.
Technically, the pair is trading well above 0.9840 (100- W MA) and near term psychological resistance is around 1.000 and any break above will take the pair to next level till 1.00998/1.0174.
The near term major support is around 0.99250 (23.6 retracement of 0.9705 and 0.9993) and any break below will drag the pair till 0.9880/0.9840. Minor weakness can be seen only below 0.97730.
It is good to buy on dips around 0.9930 with SL around 0.9840 for the TP of 1.0099/1.0170
Submit Your Comments: