Overview:
USD/CHF is expected to consolidate in a lower range after hitting a near-10-month high at 0.9212 on Tuesday. It is undermined by the franc demand on the buoyant CHF/JPY cross amid the weak yen sentiment and spillover strength on CHF from rebounding EUR. But the CHF sentiment is dented by weaker-than-expected Switzerland's 2Q GDP (came in flat versus 1Q and rose 0.6% on-year, against forecast of +0.6% on-quarter, +1.8% on-year). USD/CHF losses are also tempered by the positive dollar sentiment, dovish Swiss National Bank's monetary policy and franc sales on the buoyant EUR/CHF cross. The daily chart is still positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, 5 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 0.9230 and the second target at 0.9255. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9160. A break of this target would push the pair further downwards and one may expect the second target at 0.9135. The pivot point is at 0.9175.
Resistance levels:
0.9210
0.9230
0.9255
Support levels:
0.9160
0.9135
0.91
The material has been provided by InstaForex Company - www.instaforex.com
