Fundamental overview:
USD/CHF is expected to consolidate with risks skewed lower after hitting a three-week high of 0.9863 on Monday. It is undermined by the franc demand on cross trades versus major currencies. But USD/CHF losses are tempered by the broadly firm dollar undertone, negative Swiss interest rates, and threat of the Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels, five-day moving average above is 15-day moving average and is advancing.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.9720. A break of that target will move the pair further downwards to 0.9665. The pivot point stands at 0.9810. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9870 and the second target at 0.9940.
Resistance levels:
0.9870
0.9940
0.9985
Support levels:
0.9720
0.9665
0.9595
The material has been provided by InstaForex Company - www.instaforex.com
