USD/CHF is expected to consolidate with bearish bias after hitting two-year low at 0.8731 on Wednesday. It is undermined by the broadly weaker dollar undertone and franc demand on the buoyant CHF/JPY cross and on the soft EUR/CHF cross. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold zone, five- and fifteen-day moving averages are declining.
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 0.8695. A breach of this target will move the pair further downwards to 0.8680. The pivot point stands at 0.8730. In case the price moves in the opposite direction and bounces back from support level, and then 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 0.8750 and the second target at 0.8765.
Resistance levels:
0.8750
0.8765
0.8805
Support levels:
0.8695
0.8680
0.8645
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is expected to consolidate with bearish bias after hitting two-year low at 0.8731 on Wednesday. It is undermined by the broadly weaker dollar undertone and franc demand on the buoyant CHF/JPY cross and on the soft EUR/CHF cross. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold zone, five- and fifteen-day moving averages are declining.
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 0.8695. A breach of this target will move the pair further downwards to 0.8680. The pivot point stands at 0.8730. In case the price moves in the opposite direction and bounces back from support level, and then 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 0.8750 and the second target at 0.8765.
Resistance levels:
0.8750
0.8765
0.8805
Support levels:
0.8695
0.8680
0.8645
The material has been provided by InstaForex Company – www.instaforex.com
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