Overview:
USD/CHF is expected to trade with the bullish bias after hitting near-two-month low at 0.8701 on Thursday. It is underpinned by the lower-than-expected Switzerland 2Q consumer sentiment index (came in at +1.0 versus +3.0 forecast), lower-than-expected Switzerland April CPI (came in at 0.0% on-year versus +0.1% forecast), contagion from weak EUR on CHF, positive dollar sentiment and franc sales on soft CHF/JPY cross. But USD/CHF gains are tempered by the positions adjustment before the weekend. The Daily chart is positive-biased as bullish outside-day-range pattern was completed on Thursday, stochastics is rising from the oversold zone.
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 0.8760 and the second target at 0.8745. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8840. A breach of this target will push the pair further downwards and one may expect the second target at 0.8860. The pivot point is at 0.8780.
Resistance levels:
0.8840
0.8860
0.8880
Support levels:
0.8760
0.8745
0.8715
The material has been provided by InstaForex Company - www.instaforex.com
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