Overview:
USD/CHF is expected to consolidate after hitting three-month high at 0.8965 on Wednesday. It is undermined by the franc demand on buoyant CHF/JPY cross. But USD/CHF downside is limited by the dovish Swiss National Bank's monetary policy stance and franc sales on buoyant EUR/CHF cross. Daily chart is still positive-biased as MACD is bullish, five-day moving average is above 15-day MA and is advancing, stochastics stays elevated at overbought 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 0.8960 and the second target at 0.8985. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8875. 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 0.8895.
Resistance levels:
0.8960
0.8985
0.9010
Support levels:
0.8875
0.8860
0.8845
The material has been provided by InstaForex Company - www.instaforex.com
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