USD/CHF forms Bullish Bat Pattern, good to buy on dips : FxWirePro | December 4, 2017

Harmonic Pattern formed- Bullish Bat pattern

Potential Reversal Zone (PRZ) – 0.9705

USDCHF 0.75% declined sharply on Friday as safe haven demand increases as National Security Adviser Michael Flynn will testify against Donald Trump directed him to contact Russians when he was Presidential candidate. The pair declined till 0.97365 and shown a major recovery after US Senate passed tax bill. It is currently trading around 0.98360.

US Senate passed tax reform on Saturday morning by 51-49 vote that differs from that passed by house. The corporate tax has been reduced from 35% to 20% from 2019% and smaller individual’s tax cut will end at 2026.

Technically, the pair is facing strong resistance around 0.98825 (233- 4H MA) and any break above will take the pair to next level till 0.9945/1.000. It should break above 1.0040 for further bullishness.

On the lower side, major support stands at 0.9705 (Oct 13th 2017 low) and any break below will drag the pair till 0.9655 (61.8% fibo)/0.9600. Overall bullish invalidation only below 0.9430.

It is good to buy on dips around 0.9775-0.9780 with SL around 0.9730 for the TP of 0.98850/0.9945.