USD/CHF is expected to consolidate with risks skewed lower. It is undermined by the broadly softer USD undertone and franc demand on buoyant CHF/JPY cross amid weak yen sentiment and franc demand on retreating EUR/CHF cross. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy stance. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at the overbought zone, inside-day-range pattern was completed on Tuesday.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8935. A breach of this target will move the pair further downwards to 0.8920. The pivot point stands at 0.8980. In case the price moves in the opposite direction and bounces back from the support level, and then it moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8995 and the second target at 0.9010.
Resistance levels:
0.8995
0.9010
0.9035
Support levels:
0.8935
0.8920
0.8885
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is expected to consolidate with risks skewed lower. It is undermined by the broadly softer USD undertone and franc demand on buoyant CHF/JPY cross amid weak yen sentiment and franc demand on retreating EUR/CHF cross. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy stance. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at the overbought zone, inside-day-range pattern was completed on Tuesday.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8935. A breach of this target will move the pair further downwards to 0.8920. The pivot point stands at 0.8980. In case the price moves in the opposite direction and bounces back from the support level, and then it moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8995 and the second target at 0.9010.
Resistance levels:
0.8995
0.9010
0.9035
Support levels:
0.8935
0.8920
0.8885
The material has been provided by InstaForex Company – www.instaforex.com
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