Fundamental overview:
USD/CHF is expected to trade in higher range. It is supported by the positive dollar sentiment (ICE spot dollar index last 88.62 versus 87.98 early Tuesday) after Federal Reserve Vice Chairman Stanley Fischer said the central bank is getting closer to dropping the pledge of keeping interest rates low for a "considerable time"; stronger-than-expected 1.1% increase in U.S. October construction spending (versus forecast +0.6%), jump in U.S. ISM-NY current business index to 62.4 in November from 54.8 in October and contagion from a weak euro on the Swiss franc, ultra-loose Swiss National Bank's monetary policy and franc sales on buoyant EUR/CHF cross.
Technical comment:
Daily chart is positive-biased as stochastics is bullish, MACD histogram bars are turning positive, five-day moving average is above 15-day moving average and is advancing.
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 0.9795 and the second target at 0.9820. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9680. A break of this target would push the pair further downwards and one may expect the second target at 0.9655. The pivot point is at 0.9705.
Resistance levels:
0.9795
0.9820
0.9855
Support levels:
0.9680
0.9655
0.9615
The material has been provided by InstaForex Company - www.instaforex.com
