Overview: The USD/CHF is expected to trade in higher range after hitting more-than-two-year low of 0.8696 Thursday. It is underpinned by the positive dollar sentiment and franc sales on weak the CHF/JPY cross. But the USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross and positions adjustment before weekend. Daily chart mixed as the MACD is bearish, five and 15 day moving averages are declining,but stochastics is turning bullish at oversold zone, bullish hammer candlestick pattern was completed on Thursday.
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:
The USD/CHF is expected to trade in higher range after hitting more-than-two-year low of 0.8696 Thursday. It is underpinned by the positive dollar sentiment and franc sales on weak the CHF/JPY cross. But the USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross and positions adjustment before weekend. Daily chart mixed as the MACD is bearish, five and 15 day moving averages are declining,but stochastics is turning bullish at oversold zone, bullish hammer candlestick pattern was completed on Thursday.
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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