Fundamental overview:
USD/CHF is expected to trade in a range. Liquidity remains thin after Swiss National Bank on Thursday unexpectedly abandoned the CHF 1.20 per euro peg and lowered the interest rate on sight deposit account balances by 0.5 percentage point to 0.75%. USD/CHF is undermined by the franc demand on cross trades versus major currencies. But USD/CHF downside is supported by the USD bargain hunting, the positive dollar sentiment, negative Swiss interest rates and threat of SNB FX intervention.
Technical comment:
Daily chart is still negative-biased as MACD and slow stochastic indicators are bearish, five- and 15-day moving averages are 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 the pivot point. Short positions are recommended with the first target at 0.8345. A break of this target will move the pair further downward to 0.8000. The pivot point stands at 0.91505. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.9550 and the second target at 0.9780.
Resistance levels:
0.9550
0.9780
0.9810
Support levels:
0.8345
0.8
0.7915
The material has been provided by InstaForex Company - www.instaforex.com
