Fundamental overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 95.45 versus 95.28 early Friday) on stronger-than-expected US 4Q GDP growth by 2.2% (versus forecast +2.0%), higher final February University of Michigan consumer sentiment index of 95.4 (versus forecast 94.0 and preliminary reading of 93.6), the negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart positive-biased as the MACD and stochastics is bullish, although the latter is at overbought levels, five and 15-day moving averages are 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 0.9590 and the second target at 0.9630. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9445. A break of this target would push the pair further downwards, and one may expect the second target at 0.9405. The pivot point is at 0.9495.
Resistance levels:
0.9590
0.9630
0.9690
Support levels:
0.9445
0.9405
0.9365
The material has been provided by InstaForex Company - www.instaforex.com
