Fundamental overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the broadly firmer USD undertone (ICE spot dollar index hit nine-year high 95.481 Friday, last at 95.35 versus 94.21 early Friday). The pair is also supported by the franc sales on soft CHF/JPY cross, and negative Swiss interest rates, and the threat of SNB CHF-selling intervention.
Technical comment:
The daily chart is mixed as the MACD is in bearish mode, 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 0.9020 and the second target at 0.9050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8650. A break of this target would push the pair further downwards and one may expect the second target at 0.8575. The pivot point is at 0.8750.
Resistance levels:
0.9020
0.9050
0.91
Support levels:
0.8650
0.8575
0.85
The material has been provided by InstaForex Company - www.instaforex.com
