Fundamental overview:
USD/CHF is expected to consolidate with bullish bias after hitting a two-week high 0.9347 on Monday. It is supported by the franc sales on cross trades versus major currencies, the negative Swiss interest rates, the threat of the SNB CHF-selling intervention and bigger than expected drop in Switzerland's PMI to 48.2 in January from revised 53.6 in December (versus forecast 49.2). But the USD/CHF gains are also tempered by the weaker USD sentiment.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish; five-day moving average above 15-day moving average and 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 0.9365 and the second target at 0.9435. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9075. A break of this target would push the pair further downwards, and one may expect the second target at 0.8985. The pivot point is at 0.9150.
Resistance levels:
0.9365
0.9435
0.9465
Support levels:
0.9075
0.8985
0.8935
The material has been provided by InstaForex Company - www.instaforex.com
