Overview:
USD/CHF is expected to trade in a higher range after hitting a three-week low at 0.8739 on Friday. It is supported by the improved dollar sentiment, dovish Swiss National Bank's monetary policy stance and franc sales on weak CHF/JPY cross. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. Daily chart is still negative-biased as MACD and stochastics are bearish, although the latter is at oversold zone, five-day moving average is below 15-day MA and still 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 0.8825 and the second target at 0.8845. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8735. A breach of this target will push the pair further downwards and one may expect the second target at 0.8695. The pivot point is at 0.8755.
Resistance levels:
0.8825
0.8845
0.8870
Support levels:
0.8735
0.8695
0.8650
The material has been provided by InstaForex Company - www.instaforex.com
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