Fundamental overview:
USD/CHF is expected to trade in a higher range. It is supported by positive dollar sentiment (ICE spot dollar index last 97.91 versus 97.07 early Tuesday) as more-than-expected 5.133 million US February job openings (versus forecast 5.01 million), a rise in the US IBD/TIPP economic optimism index to 51.3 in April from 49.1 in March, and larger-than-expected $15.52 billion increase in US February consumer credit (versus forecast +$12.0 billion) bolster belief that last Friday's weak US March non-farm payrolls report was an aberration and that the US economy will regain momentum after the first quarter, negative Swiss interest rates and threat of Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is mixed as the MACD is bearish but stochastics is turned bullish at oversold levels.
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 0.9675 and the second target at 0.9750. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9490. 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 0.7550.
Resistance levels:
0.9675
0.9750
0.9835
Support levels:
0.9490
0.9445
0.94
The material has been provided by InstaForex Company - www.instaforex.com
