Fundamental overview:
USD/CHF is expected to consolidate with a bearish bias after hitting a three-week low at 0.9530 on Wednesday. CHF sentiment is boosted by the rise in Switzerland ZEW-Credit Suisse indicator of economic sentiment to minus 7.6 in November from minus 30.7 in October. USD/CHF is also weighed by the franc demand on buoyant CHF/JPY cross amid the weak yen sentiment. But USD/CHF losses are tempered by the ultra-loose Swiss National Bank's monetary policy.
Technical comments:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.
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 0.9555. A break of this target will move the pair further downwards to 0.9555. The pivot point stands at 0.9605. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 0.9625 and the second target at 0.9655.
Resistance levels:
0.9625
0.9655
0.9690
Support levels:
0.9555
0.9515
0.9785
The material has been provided by InstaForex Company - www.instaforex.com
