Fundamental overview:
USD/CHF is expected to trade in a higher range. It is supported by the franc sales on cross trades versus major currencies and broadly firmer dollar undertone (ICE spot dollar index last 94.55 versus 94.30 early Monday) despite the weak U.S. existing home sales and a drop in Dallas Fed manufacturing index to -11.2 in February from -4.4 in January (versus forecast -5.5), the negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is mixed as the MACD is bullish, five and 15-day moving averages are advancing but stochastics is bearish 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 0.9535 and the second target at 0.9580. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9405. A break of this target would push the pair further downwards, and one may expect the second target at 0.9365. The pivot point is at 0.9440.
Resistance levels:
0.9535
0.9580
0.9625
Support levels:
0.9405
0.9365
0.9325
The material has been provided by InstaForex Company - www.instaforex.com
