Fundamental overview:
USD/CHF is expected to range-trade before the outcome of the meeting between Greece and the EU. USD/CHF is undermined by the negative dollar sentiment (ICE spot dollar index last 94.12 versus 94.18 early Friday) on a surprise drop in preliminary University of Michigan U.S. consumer sentiment index to 93.6 in February from 98.1 in January (versus forecast for rise to 98.3). But the USD/CHF losses are tempered by the negative Swiss interest rates, the threat of SNB CHF-selling intervention and the franc sales on cross trades versus major currencies.
Technical comment:
The daily chart is still positive-biased as the 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 0.9335 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 0.9240. A break of this target would push the pair further downwards, and one may expect the second target at 0.9205. The pivot point is at 0.9265.
Resistance levels:
0.9335
0.9365
0.9435
Support levels:
0.9240
0.9205
0.9160
The material has been provided by InstaForex Company - www.instaforex.com
