Fundamental overview:
USD/CHF is expected to trade in higher range.It is underpinned by the improved dollar sentiment (ICE spot dollar index last 85.55 versus 85.32 early Thursday) after comment from Fed's Bullard that "the markets are making a mistake" expecting the Fed to maintain its ultra-easy policy stance longer than Fed officials currently expect; fewer-than-expected 287,000 U.S. jobless claims in week ended Oct. 4 (versus forecast 292,000), larger-than-expected 0.7% increase in U.S. August wholesale inventories (versus forecast +0.4%) and franc sales on soft CHF/JPY cross and dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the positions adjustment before U.S. long weekend. Financial markets in Japan and U.S. are shut Monday for public holidays).
Technical comments:
Daily chart is still negative-biased as MACD and stochastics are in bearish mode.
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 0.96 and the second target at 0.9650. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9465. A break of this target would push the pair further downwards and one may expect the second target at 0.9420. The pivot point is at 0.95.
Resistance levels:
0.96
0.9650
0.9685
Support levels:
0.9465
0.9420
0.9380
The material has been provided by InstaForex Company - www.instaforex.com
