Overview:
USD/CHF is expected to consolidate with bullish bias after hitting a five-week high at 0.8908 on Tuesday. It is underpinned by the contagion from weak euro on CHF and dovish Swiss National Bank's monetary policy stance. Daily chart is positive-biased as MACD and stochastics are bullish, although the latter is at overbought zone, five-day moving average is above 15-day MA and is advancing.
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 0.8955 and the second target at 0.8930. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8830. A breach of this target will push the pair further downwards and one may expect the second target at 0.8800. The pivot point is at 0.8850.
Resistance levels:
0.8930
0.8955
0.8985
Support levels:
0.8830
0.88
0.8775
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