Fundamental overview:
USD/CHF is expected to trade with risks skewed higher. It is supported by the broadly stronger USD undertone (ICE spot dollar index last 94.41 versus 94.10 on early Monday), the negative Swiss interest rates and the threat of the SNB CHF-selling intervention.
Technical comment:
The daily chart is 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
