Fundamental overview:
USD/CHF is expected to trade with risks skewed higher. It is supported by the positive dollar sentiment and negative Swiss interest rates and threat of SNB CHF-selling intervention. But CHF sentiment is boosted by less-than-expected 0.5% on-year drop in Switzerland January CPI (versus forecast -0.7% on-year). USD/CHF gains are also tempered by the franc demand on soft CAD/CHF cross.
Technical comment:
The daily chart is positive-biased as MACD and stochastics are bullish, although the latter is at overbought levels.
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 0.9310 and the second target at 0.9365. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9160. A break of this target would push the pair further downwards, and one may expect the second target at 0.9115. The pivot point is at 0.9205.
Resistance levels:
0.9310
0.9365
0.9435
Support levels:
0.9160
0.9075
0.8985
The material has been provided by InstaForex Company - www.instaforex.com
