USD/CHF is expected to consolidate with bullish bias after hitting the 2.5-month high 0.9550 on Wednesday. It is underpinned by the positive dollar sentiment, the drop in the Swiss ZEW - Credit Suisse indicator of economic sentiment to -5.4 in July from 0.1 in June, the threat of the Swiss National Bank to carry out CHF-selling intervention, and the negative Swiss interest rates.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter one is at overbought levels.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.96 and the second target at 0.9645. In the alternative scenario, short positions are recommended with the first target at 0.9470 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9440. The pivot point is at 0.95.
Resistance levels: 0.96 0.9645 0.9690
Support levels: 0.9470 0.9440 0.94
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