Fundamental Overview:
USD/CHF is expected to consolidate after hitting a 14-month high at 0.9515 on Thursday. It is supported by the positive dollar sentiment (ICE spot dollar index last 85.19 versus 85.06 early Thursday) as the U.S. economy outperforms other major economies, contagion from weak EUR on CHF, dovish Swiss National Bank's monetary policy and franc sales on soft CHF/JPY cross. But USD/CHF upside is limited by the positions adjustment before the weekend and larger-than-expected 18.2% on-month drop in August durable goods orders (versus forecast minus 17.5%); lower U.S. Treasury yields (10-year at 2.504% versus 2.569% late Wednesday).
Technical Comments:
Daily chart is still 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 0.9540 and the second target at 0.9565. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9420. A break of this target would push the pair further downwards and one may expect the second target at 0.9380. The pivot point is at 0.9455.
Resistance levels:
0.9540
0.9565
0.96
Support levels:
0.9420
0.9380
0.9340
The material has been provided by InstaForex Company - www.instaforex.com
