Overview:
USD/CHF is expected to consolidate after hitting one-month high at 0.8899 on Friday. It is undermined by the franc demand on buoyant CHF/JPY cross. But USD/CHF downside is limited by the positive dollar sentiment and the dovish monetary policy of the Swiss National Bank. Daily chart is still positive-biased as MACD and stochastics is bullish, although latter is at overbought zone, five-day moving average is above 15-day MA and is advancing.
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 0.8810. A breach of this target will move the pair further downwards to 0.8785. The pivot point stands at 0.8875. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.89 and the second target at 0.8930.
Resistance levels:
0.89
0.8930
0.8960
Support levels:
0.8810
0.8785
0.8765
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 31, 2014 . Thanks for your support on Technical analysis of USD/CHF for March 31, 2014
No comments:
Post a Comment