Overview:
USD/CHF is expected to consolidate in higher range after hitting three-week low at 0.8760 on Monday. It is supported by the dovish Swiss National Bank's monetary policy stance and franc sales on rebounding EUR/CHF cross. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. Daily chart is still negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and it is 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 0.8710. A breach of this target will move the pair further downwards to 0.8685. The pivot point stands at 0.8765. 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 0.8710 and the second target at 0.8685.
Resistance levels:
0.8780
0.8805
0.8845
Support levels:
0.8710
0.8685
0.8650
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 May 06, 2014 . Thanks for your support on Technical analysis of USD/CHF for May 06, 2014
No comments:
Post a Comment