Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a six-and-a-half month high 0.9112 on Tuesday. It is supported by the positive dollar sentiment, franc sales on soft CHF/JPY cross, dovish Swiss National Bank's monetary policy, and contagion from the weak euro on the Swiss franc. But USD/CHF gains are tempered by the flows to haven CHF as geopolitical risk is rising in Ukraine as well as franc demand on soft EUR/CHF cross. The daily chart is positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, five and 15-day moving averages are 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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9120 and the second target at 0.9145. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9035. A break of this target would push the pair further downwards and one may expect the second target at 0.9010. The pivot point is at 0.9075.
Resistance levels:
0.9120
0.9145
0.9155
Support levels:
0.9035
0.9010
0.8975
The material has been provided by InstaForex Company - www.instaforex.com
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