Fundamental overview:
USD/CHF is expected to consolidate with bullish bias after hitting four-year high 1.0176 on Wednesday.It is underpinned by the positive dollar sentiment; contagion from the weak euro on the Swiss franc and ultra-loose Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross.
Technical comment:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought levels, five and 15-day moving averages are 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 1.0225 and the second target at 1.0255. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 1.0090. A break of this target would push the pair further downward, and one may expect the second target at 1.0030. The pivot point is at 1.0125.
Resistance levels:
1.0225
1.0255
1.0275
Support levels:
1.0090
1.0030
0.9985
The material has been provided by InstaForex Company - www.instaforex.com
