Fundamental overview:
USD/CHF is expected to consolidate with bullish bias after hitting a six-week high of 0.9598 on Monday. It is underpinned by bullish dollar sentiment, negative Swiss interest rates, and the threat of the Swiss National Bank CHF-selling intervention. But the Swiss sentiment was boosted by a stronger-than-expected Swiss PMI 47.3 in February (versus forecast 46.5).
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are 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 0.9630 and the second target at 0.9670. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9495. A break of this target would push the pair further downwards, and one may expect the second target at 0.9445. The pivot point is at 0.9530.
Resistance levels:
0.9630
0.9670
0.9690
Support levels:
0.9495
0.9445
0.9405
The material has been provided by InstaForex Company - www.instaforex.com
