Fundamental Overview:
USD/CHF is expected to trade in a higher range.It is supported by the broad USD strength amid escalation of risk aversion as the U.S. stepped up its involvement in Syria in the fight against Islamic State militants. USD sentiment is also boosted by Markit flash U.S. September manufacturing PMI coming in at 57.9, unchanged versus August's reading and keeping the index at a 52-month high amd rise in U.S. Richmond Fed manufacturing index to 14 in September from 12 in August., contagion from weak EUR on CHF and dovish Swiss National Bank's monetary policy.
Technical Comments:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at 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 0.9460 and the second target at 0.9480. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9380. A break of this target would push the pair further downwards and one may expect the second target at 0.9340. The pivot point is at 0.9400.
Resistance levels:
0.9460
0.9480
0.9500
Support levels:
0.9380
0.9340
0.9295
The material has been provided by InstaForex Company - www.instaforex.com
