Fundamental overview:
USD/CHF is expected to consolidate with risks skewed lower after hitting an eight-day high of 0.9338 on Thursday. It is undermined by the weaker dollar sentiment. But the USD/CHF losses are tempered by the negative Swiss interest rates, the threat of theSNB CHF-selling intervention, the franc sales on buoyant EUR/CHF cross, and by positions adjustment ahead of the weekend.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels.
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 0.9335 and the second target at 0.9365. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9205. A break of this target would push the pair further downwards, and one may expect the second target at 0.9160. The pivot point is at 0.9240.
Resistance levels:
0.9335
0.9365
0.9435
Support levels:
0.9205
0.9160
0.9075
The material has been provided by InstaForex Company - www.instaforex.com
