Overview:
USD/CHF is expected to consolidate in lower range after hitting nine-month high at 0.9185 on Wednesday. It is undermined by the broadly weaker USD undertone and franc demand on the soft EUR/CHF cross. But CHF sentiment is dented by the 0.41-point drop in Switzerland July UBS Consumption Indicator to 1.66. USD/CHF losses are also tempered by the dovish Swiss National Bank's monetary policy. The daily chart is mixed as MACD is bullish, 5 and 15-day moving averages advancing but stochastics is turning bearish at overbought zone.
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 0.9110 and the second target at 0.9070. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.92. A break of this target would push the pair further downwards and one may expect the second target at 0.9220. The pivot point is at 0.9164.
Resistance levels:
0.9185
0.92
0.9220
Support levels:
0.9110
0.9070
0.9050
The material has been provided by InstaForex Company - www.instaforex.com
