Fundamental overview:
USD/CHF is expected to consolidate with a bullish bias. It is undermined by the weaker USD sentiment (ICE spot dollar index last 85.01 versus 85.31 early Monday) as U.S. Treasury yields inched lower (10-year at 2.192% versus 2.199% late Friday) 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 mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining but stochastics is bullish near the oversold zone.
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 0.9525 and the second target at 0.9560. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9360. A break of this target would push the pair further downwards and one may expect the second target at 0.9325. The pivot point is at 0.9390.
Resistance levels:
0.9525
0.9560
0.96
Support levels:
0.9360
0.9325
0.93
The material has been provided by InstaForex Company - www.instaforex.com
