Overview:
USD/CHF is expected to consolidate with bearish bias after hitting near-three-week low at 0.8906 on Wednesday. It is undermined by the negative dollar sentiment, franc demand on buoyant CHF/JPY cross and spillover strength from euro on CHF. But USD/CHF losses are tempered by the franc sales on rebounding EUR/CHF cross. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
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 0.8975 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 0.8905. A breach of this target would push the pair further downwards and one may expect the second target at 0.8895. The pivot point is at 0.8920.
Resistance levels:
0.8975
0.8985
0.9015
Support levels:
0.8905
0.8895
0.8865
The material has been provided by InstaForex Company - www.instaforex.com
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