Fundamental Overview:
USD/CHF is expected to consolidate with a bullish bias before FOMC decision. It is weighed by the broadly softer USD undertone; franc demand on buoyant CHF/JPY cross and on soft EUR/CHF cross. But USD/CHF losses tempered by dovish Swiss National Bank's monetary policy.It is dented by broadly weaker USD undertone (ICE spot dollar index last 84.09 versus 84.25 early Tuesday and jitters about the Scottish independence vote on Thursday. Markets await 1800 GMT Federal Reserve's interest rate decision and participants are watching out for subtle adjustments in the way the Fed describes its outlook on policy that could signal earlier hikes to the Fed's key policy rate than the widely-expected mid-2015.
Technical Comments:
The daily chart is mixed as MACD is bullish, but stochastics is bearish at the 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 0.9375 and the second target at 0.94. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9310. A break of this target would push the pair further downwards and one may expect the second target at 0.9290. The pivot point is at 0.9325.
Resistance levels:
0.9375
0.94
0.9430
Support levels:
0.9310
0.9290
0.9250
The material has been provided by InstaForex Company - www.instaforex.com
