Fundamental overview:
USD/CHF is expected to consolidate in a higher range. It is undermined by the softer dollar sentiment (ICE spot dollar index last at 87.77 versus 87.86 early Thursday) after more-than-expected 290,000 U.S. jobless claims in week ended Nov. 8 (versus forecast 281,000); subdued investor risk appetite (VIX fear gauge rose 5.91% to 13.79) as U.S. stocks surrendered gains after hitting record highs overnight (S&P 500 hit all-time high 2,046.18 but closed up just 0.05% at 2,039.33) and franc demand on buoyant CHF/JPY cross amid weak yen sentiment and franc demand on soft GBP/CHF and CAD/CHF crosses. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy and positions adjustment before the weekend.
Technical comments:
Daily chart is tilting negative as stochastics falling from overbought levels, MACD histogram bars are turning negative.
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 0.97 and the second target at 0.9740. 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 0.9540. The pivot point is at 0.9610.
Resistance levels:
0.97
0.9740
0.9775
Support levels:
0.9580
0.9540
0.95
The material has been provided by InstaForex Company - www.instaforex.com
