Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a seven-month high at 0.9138 on Wednesday. It is underpinned by the positive dollar sentiment and dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. The daily chart is positive-biased as stochastics is in a bullish mode, MACD is turning bullish, five and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9130 and the second target at 0.9145. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9070. A break of this target would push the pair further downwards and one may expect the second target at 0.9050. The pivot point is at 0.91.
Resistance levels:
0.9130
0.9145
0.9170
Support levels:
0.9070
0.9050
0.9030
The material has been provided by InstaForex Company - www.instaforex.com
