USD/CHF is expected to trade with risks skewed lower. It is undermined by the weaker dollar sentiment, reduced safe-haven appeal of CHF and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the caution before Wednesday’s Federal Reserve monetary policy decision and franc sales on rebounding EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15 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 0.8660. The pivot point stands at 0.8755. In case the price moves in the opposite direction, 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 0.8785 and the second target at 0.8805.
Resistance levels:
0.8785
0.8805
0.8835
Support levels:
0.8695
0.8660
0.8640
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is expected to trade with risks skewed lower. It is undermined by the weaker dollar sentiment, reduced safe-haven appeal of CHF and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the caution before Wednesday’s Federal Reserve monetary policy decision and franc sales on rebounding EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15 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 0.8660. The pivot point stands at 0.8755. In case the price moves in the opposite direction, 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 0.8785 and the second target at 0.8805.
Resistance levels:
0.8785
0.8805
0.8835
Support levels:
0.8695
0.8660
0.8640
The material has been provided by InstaForex Company – www.instaforex.com
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