Fundamental overview:
USD/CHF is expected to consolidate with bearish bias after hitting three-day low 0.9652 on Tuesday. CHF sentiment is boosted by the lower-than-expected Switzerland November unemployment rate of 3.1% (versus forecast 3.2%). USD/CHF is also undermined by the broadly weaker USD undertone. But USD/CHF downside is limited by the franc sales on soft CHF/JPY cross and ultra-loose Swiss National Bank's monetary policy.
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastics turned bearish at overbought levels.
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 0.9705. A break of this target will move the pair further downwards to 0.9675. The pivot point stands at 0.9735. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 0.9770 and the second target at 0.9795.
Resistance levels:
0.9770
0.9795
0.9820
Support levels:
0.9705
0.9675
0.9635
The material has been provided by InstaForex Company - www.instaforex.com
