Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a nine-month high at 0.9179 on Monday. It is supported by the dovish Swiss National Bank's monetary policy, franc sales on retreating CHF/JPY cross, and contagion from weak EUR on CHF. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. The daily chart is positive-biased as MACD and stochastics are bullish, although the latter is in the overbought zone; 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 0.9175 and the second target at 0.92. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9110. A break of this target would push the pair further downwards and one may expect the second target at 0.9070. The pivot point is at 0.9125.
Resistance levels:
0.9175
0.92
0.9225
Support levels:
0.9110
0.9070
0.9050
The material has been provided by InstaForex Company - www.instaforex.com
