USD/CHF is expected to consolidate with bullish bias after hitting three-and-a-half month high at 0.8982 on Tuesday. It is underpinned by the positive dollar sentiment, franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross and dovish Swiss National Bank’s monetary policy stance. But CHF sentiment are soothed as Switzerland trade surplus widened to CHF2.4 billion in April from CHF2 billion in March. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Tuesday; MACD and stochastics are bullish, although the latter is at overbought zone, five and 15-day moving averages are advancing.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8985 and the second target at 0.9015. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8910. A breach of this target will push the pair further downwards and one may expect the second target at 0.8885. The pivot point is at 0.8935.
Resistance levels:
0.8985
0.9015
0.9045
Support levels:
0.8910
0.8885
0.8850
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is expected to consolidate with bullish bias after hitting three-and-a-half month high at 0.8982 on Tuesday. It is underpinned by the positive dollar sentiment, franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross and dovish Swiss National Bank’s monetary policy stance. But CHF sentiment are soothed as Switzerland trade surplus widened to CHF2.4 billion in April from CHF2 billion in March. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Tuesday; MACD and stochastics are bullish, although the latter is at overbought zone, five and 15-day moving averages are advancing.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8985 and the second target at 0.9015. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8910. A breach of this target will push the pair further downwards and one may expect the second target at 0.8885. The pivot point is at 0.8935.
Resistance levels:
0.8985
0.9015
0.9045
Support levels:
0.8910
0.8885
0.8850
The material has been provided by InstaForex Company – www.instaforex.com
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