Fundamental overview:
USD/CHF is expected to trade in a lower range. It is undermined by the weaker USD sentiment (ICE spot dollar index last 88.20 versus 88.52 early Friday) as U.S. Treasury yields fell (10-year at 2.103% versus 2.178% late Thursday) on lower-than-expected U.S. PPI of -0.2% on-month in November (versus forecast -0.1%) and haven-buying of U.S. Treasury bonds and franc demand on soft EUR/CHF cross. But USD/CHF losses are tempered by the ultra-loose Swiss National Bank's monetary policy.
Technical comment:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is falling below 15-day moving average.
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 positions are recommended with the first target at 0.9302. A break of this target will move the pair further downwards to 0.9595. The pivot point stands at 0.9685. 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 0.9720 and the second target at 0.9755.
Resistance levels:
0.9720
0.9755
0.9790
Support levels:
0.9615
0.9595
0.9545
The material has been provided by InstaForex Company - www.instaforex.com
