Overview:
USD/CHF is expected to consolidate after hitting its two-year low at 0.8753 on Friday. It is undermined by the franc demand on soft EUR/CHF cross and flows to safe-haven CHF amid increased risk aversion. But USD/CHF downside is limited by 0.1% on-year drop in Switzerland February CPI (versus forecast 0.0%); comment from the Swiss National Bank's President Thomas Jordan in an interview with the Basler Zeitung that it would be inappropriate to exit from the minimum exchange policy and raise interest rates in a bid to counter the boom in the country's property market and positive U.S. dollar sentiment. Daily chart is negative-biased as MACD and stochastics are bearish, 5- and 15-day moving averages are declining.
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 0.8730. A breach of this target will move the pair further downwards to 0.8710. The pivot point stands at 0.8825. 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 0.8730 and the second target at 0.8710.
Resistance levels:
0.884
0.8860
0.8895
Support levels:
0.876
0.8715
0.87
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of USD/CHF for March 10, 2014 . Thanks for your support on Technical analysis of USD/CHF for March 10, 2014
No comments:
Post a Comment