Fundamental Overview:
USD/CHF is expected to trade in a lower range. It is undermined by the falling U.S. Treasury yields and broadly weaker dollar undertone (ICE spot dollar index last 85.66 versus 85.77 early Tuesday) on lower U.S. Treasury yields (10-year at 2.341% versus 2.425% late Monday), smaller-than-expected $13.52 billion increase in U.S. August consumer credit (versus forecast +$21.1 billion) and the franc demand on soft CAD/CHF cross. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy and the franc sales on soft CHF/JPY cross amid stronger yen sentiment and the franc sales on buoyant AUD/CHF cross.
Technical comments:
Daily chart is mixed as stochastics is falling from overbought but MACD is still in bullish mode.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9535. A break of this target will move the pair further downwards to 0.95. The pivot point stands at 0.9620. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9650 and the second target at 0.9685.
Resistance levels:
0.9650
0.9685
0.9725
Support levels:
0.9535
0.95
0.9485
The material has been provided by InstaForex Company - www.instaforex.com
