Fundamental overview:
USD/CHF is expected to trade with a bullish bias. It is undermined by softer USD sentiment and spillover strength from euro on the Swiss franc. But USD/CHF losses are tempered by the ultra-loose Swiss National Bank's monetary policy and franc sales on buoyant EUR/CHF as the cross rebounds further from the 1.2000 EUR/CHF floor. USD/CHF upside is limited by the softer dollar sentiment (ICE spot dollar index last 87.89 versus 88.15 early Tuesday) as surprise fall in Conference Board U.S. consumer confidence index to 88.7 in November from October's 94.5 (versus forecast for rise to 96.8) and big drop in Richmond Fed manufacturing index to 4 in November from 20 in October offset unexpected upward revision in U.S. 3Q GDP to 3.9% from preliminary reading of 3.5% (versus forecast 3.3%).
Technical comments:
Daily chart is mixed as MACD is bearish but stochastics is neutral.
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 0.9675 and the second target at 0.9720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9580. A break of this target would push the pair further downwards and one may expect the second target at 0.9555. The pivot point is at 0.9610.
Resistance levels:
0.9675
0.9720
0.9740
Support levels:
0.9580
0.9555
0.9515
The material has been provided by InstaForex Company - www.instaforex.com
