Fundamental overview:
USD/CHF is expected to trade in a higher range. It is supported by the bullish dollar sentiment (ICE spot dollar index last 94.68 versus 94.62 early Thursday) on fewer than expected 265,000 U.S. jobless claims for the week ended on January 24, it turned out to be at the lowest level since April 2000 (versus forecast 300,000). The currency pair is also supported by the franc sales on cross trades versus major currencies, the negative Swiss interest rates and by the threat of the SNB CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.
Technical comment:
The daily chart is tilting positive as stochastics is in bullish mode, the MACD histogram bars are turning positive.
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 0.9365 and the second target at 0.9435. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8985. A break of this target would push the pair further downwards, and one may expect the second target at 0.8925. The pivot point is at 0.9075.
Resistance levels:
0.9365
0.9435
0.9465
Support levels:
0.8985
0.8925
0.89
The material has been provided by InstaForex Company - www.instaforex.com
