Overview:
USD/CHF is expected to trade in higher range. It is underpinned by the positive U.S. dollar sentiment and franc sales on soft CHF/JPY cross. But CHF sentiment is soothed by the surprise rise in Switzerland PMI to 57.6 in February from 56.1 in January (versus 55.8 forecast). USD/CHF gains are also tempered by the franc demand on soft EUR/CHF cross. Daily chart is still negative-biased as MACD is bearish, but stochastics stays suppressed at oversold zone; 5- 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 0.8875 and the second target at 0.8895. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8795. A breach of this target will push the pair further downwards and one may expect the second target at 0.8770. The pivot point is at 0.8815.
Resistance levels:
0.8875
0.8895
0.8935
Support levels:
0.8795
0.8770
0.8740
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