Fundamental overview:
USD/CHF is to trade in a higher range. It is underpinned by the positive dollar sentiment (ICE spot dollar index hit nine-year high 94.497 overnight, last at 94.21 versus 92.75 early Thursday) on divergent U.S. monetary policy stance versus other major central banks, negative Swiss interest rates, and threat of SNB CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.
Technical comment:
Daily chart is mixed as MACD is in bearish mode, but stochastics is neutral, inside-day-range pattern was completed on Thursday.
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 0.8780 and the second target at 0.8840. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.8445. A break of this target would push the pair further downwards and one may expect the second target at 0.8360. The pivot point is at 0.8520.
Resistance levels:
0.8780
0.8840
0.8910
Support levels:
0.8445
0.8360
0.83
The material has been provided by InstaForex Company - www.instaforex.com
