Fundamental overview:
USD/CHF is expected to trade in a higher range. It is supported by the franc sales on cross trades versus major currencies, negative Swiss interest rates, and threat of Swiss National Bank CHF-selling intervention. SNB president Thomas Jordan warned Tuesday the central bank is prepared to conduct currency-market interventions as the franc remains overvalued. But USD/CHF gains are tempered by the weaker dollar sentiment.
Technical comment:
The daily chart is positive-biased as 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 0.94 and the second target at 0.9420. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9285. A break of this target would push the pair further downwards, and one may expect the second target at 0.9240. The pivot point is at 0.9310.
Resistance levels:
0.94
0.9420
0.9445
Support levels:
0.9285
0.9240
0.9205
The material has been provided by InstaForex Company - www.instaforex.com
