Fundamental overview:
USD/CHF is expected to trade in lower range.It is undermined by the negative dollar sentiment (ICE spot dollar index last 85.32 versus 85.66 early Wednesday) on dovish minutes of FOMC Sept. 16-17 meeting which showed the Federal Reserve was in no rush to raise interest rates and was concerned that the recent strength of the dollar could hurt U.S. exports and growth as well as putting downward pressure on already low levels of inflation. USD/CHF is also weighed by the lower U.S. Treasury yields (10-year at 2.318% versus 2.341% late Tuesday) and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy.
Technical comments:
Daily chart is negative-biased as stochastics is falling from overbought zone, MACD staged bearish crossover against its exponential moving average.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9460. A break of this target will move the pair further downwards to 0.9420. The pivot point stands at 0.9550. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.96 and the second target at 0.9650.
Resistance levels:
0.96
0.9650
0.9685
Support levels:
0.9460
0.9420
0.9380
The material has been provided by InstaForex Company - www.instaforex.com
