USD/CHF:Sell on rallies : FxWirePro | November 10, 2017

USD/CHF -0.02% has declined sharply yesterday after US Senate confirmed delay in corporate tax cut. The pair declined till 0.99218 and is currently trading around 0.99430.

GOP Senate leaders announced a tax package that it will delay cutting corporate tax from 35% to 20% until 2019.

Swiss Central bank President Thomas Jordan reiterated that Swiss franc 0.68% currency is overvalued and SNB will interfere to bring its value down.

Technically, intraday trend is mildly weak, a further dip till 0.9855 is likely. The pair’s near tern support is around 0.9908 (20- day MA).Any break below will drag the pair to next level till 0.98948 (23.6% fibo and trend line support)/0.98550. Short term trend is still bullish as long as support 0.9835 (Resistance turned into support) holds. Long term weakness only below 0.9705.

The major resistance is around 1.0040 and any break above will take the pair to next level till 1.0100/1.0174. The near term resistance is around 0.9983 (10- day MA)/1.000.

It is good to sell on rallies around 0.9955-0.9960 with SL around 1.000 for the TP of 0.9855/0.9840.