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 the divergent US monetary policy stance versus other major central banks, the negative Swiss interest rates, and the threat of the SNB to carry out CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.
Technical comment:
The daily chart is mixed as the 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 wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9635 and the second target at 0.9665. In the alternative scenario, short positions are recommended with the first target at 0.9535 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.95. The pivot point is at 0.9575.
Resistance levels: 0.9635 0.9665 0.9690
Support levels: 0.9535 0.95 0.9450
The material has been provided by InstaForex Company - www.instaforex.com