Overview:
USD/CHF is expected to trade in a higher range after hittingits near eight-week low at 0.8854 on Wednesday. It is underpinned by the positive dollar sentiment, drop in Switzerland's ZEW-Credit Suisse indicator of economic sentiment to 28.7 in February from 36.4 in January and franc sales on soft CHF/JPY cross. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. Daily chart is mixed as MACD is bearish, five and 15 day moving averages are declining, but stochastics is turning bullish at oversold zone.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.883. A breach of this target will move the pair further downwards to 0.8795. The pivot point stands at 0.8855. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.883 and the second target at 0.8795.
Resistance levels:
0.891
0.893
0.865
Support levels:
0.883
0.8795
0.875
The material has been provided by InstaForex Company - www.instaforex.com
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