Overview:
USD/CHF is expected to trade with bullish bias. It is undermined by the weaker dollar sentiment and flows to haven franc amid increased investor risk aversion. But franc sentiment is dented by the 0.8% on-year drop in Switzerland February import price index and 0.4% on-year drop in February PPI. USD/CHF losses are also tempered by the franc sales on soft CHF/JPY cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are declining.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8765 and the second target at 0.8785. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8695. A breach of this target will push the pair further downwards and one may expect the second target at 0.8680. The pivot point is at 0.8730.
Resistance levels:
0.8765
0.8785
0.8805
Support levels:
0.8695
0.8680
0.8660
The material has been provided by InstaForex Company - www.instaforex.com
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