Fundamental overview:
USD/CHF is expected to trade with risks skewed lower. It is undermined by the weaker dollar sentiment (ICE spot dollar index last 85.57 versus 85.69 early Monday) on smaller-than-expected +0.3% on-month increase in U.S. September pending home sales index (versus forecast +1.0%). 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, but stochastics is in a bullish 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 0.9560 and the second target at 0.9590. 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 0.9435. The pivot point is at 0.9500.
Resistance levels:
0.9560
0.9590
0.9625
Support levels:
0.9465
0.9435
0.9390
The material has been provided by InstaForex Company - www.instaforex.com
