Overview:
USD/CHF is expected to trade in a range. The CHF sentiment is dented by the 1.3% on-year drop in Switzerland July import price index and 0.6% on-year decline in July PPI. USD/CHF is also supported by the dovish Swiss National Bank's monetary policy. But USD/CHF upside is limited by the franc demand on buoyant CHF/JPY cross and on soft EUR/CHF cross and positions adjustment before the weekend. The daily chart is tilting negative as five-day moving average is falling below 15-day MA; MACD and stochastics are bearish.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9040. A break of this target will move the pair further downwards to 0.9020. The pivot point stands at 0.9085. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.91 and the second target at 0.9115.
Resistance levels:
0.91
0.9115
0.9135
Support levels:
0.9040
0.9020
0.900
The material has been provided by InstaForex Company - www.instaforex.com
