Fundamental overview:
USD/CHF is expected to range-trade. It is Weighed by the franc demand on buoyant CHF/JPY cross. But USD/CHF downside is limited by improved USD sentiment after unexpected 23,000 drop in U.S. jobless claims to 14-year low of 264,000 in week ended Oct. 11 (versus forecast 290,000), stronger-than-expected 1.0% increase in U.S. September industrial production (versus forecast +0.4%) for largest monthly increase in three years, while capacity utilization rose more-than-expected to 79.3% in September--highest level since June 2008 (versus forecast 79.0%), less-than-expected drop in Philadelphia Fed's index of general business activity to 20.7 in October from 22.5 in September (versus forecast 19.9), franc sales on rebounding EUR/CHF cross, dovish Swiss National Bank's monetary policy and positions adjustment before weekend.
Technical comments:
Daily chart is still negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining although inside-day-range pattern was completed on Thursday.
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 0.9385. A break of this target will move the pair further downwards to 0.9350. The pivot point stands at 0.9500. 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 0.9525 and the second target at 0.9560.
Resistance levels:
0.9525
0.9560
0.96
Support levels:
0.9385
0.9350
0.9315
The material has been provided by InstaForex Company - www.instaforex.com
