Fundamental overview:
USD/CHF is expected to trade in a higher range. It is supported by the positive dollar sentiment, the negative Swiss interest rates and the threat of the Swiss National Bank to carry out CHF-selling intervention. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross and positions adjustment ahead of the weekend.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, five-day moving average staged bullish crossover against 15-day moving average, bullish parabolic stop-and-reverse signal was hit on Thursday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.9870 and the second target at 0.9810. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9665. A break of this target would push the pair further downwards, and one may expect the second target at 0.9595. The pivot point is at 0.9720.
Resistance levels:
0.9870
0.9940
0.9985
Support levels:
0.9665
0.9595
0.9530
The material has been provided by InstaForex Company - www.instaforex.com
