- USD/CHF has broken major trend line support 0.9675 and break below confirms weakness, a decline till 0.9595/0.9550 cannot be ruled out.
- USD has declined against all major currencies after dovish FOMC minutes statement. The rate hike is expected to happen this year but timing is uncertain as strong dollar, lagging inflation and Chinese developments are threatening US economy.
- Additionally, most of the FOMC members agreed that “the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point.”
- Intraday trend reversal only above 0.9725 and break above targets 0.9770/0.9800 level.
- On the downside major support is around 0.9640 and break below will drag the pair further down till 0.9595/0.9550.
It is good to sell on rallies around 0.9665-0.9670 with SL around 0.9725 for the TP of 0.9595/0.9550
The material has been provided by InstaForex Company – www.instaforex.com