Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a one-month high at 0.8989 on Wednesday. The CHF sentiment is dented by the drop in Switzerland ZEW-Credit Suisse indicator of economic sentiment to the 18-month low of 0.1 in July from 4.8 in June. USD/CHF is also supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. The daily chart is positive-biased as MACD and stochastics are bullish, although the latter is in the overbought zone, five-day moving average is above 15-day MA and is advancing.
Trading recommendations:
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 0.8910 and the second target at 0.8895. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9. A break of this target would push the pair further downwards and one may expect the second target at 0.9015. The pivot point is at 0.8950.
Resistance levels:
0.9
0.9015
0.9035
Support levels:
0.8910
0.8895
0.8865
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