Technical analysis of USD/CHF for October 03, 2014
October 3, 2014 4:40 pm
Fundamental Overview:
USD/CHF is expected to consolidate with bullish bias as markets await U.S. non-farm payrolls report. USD/CHF is undermined by the broadly weaker USD undertone and spillover strength from rebounding EUR on CHF. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy and broadly weaker USD undertone (ICE spot dollar index last 85.62 versus 85.91 early Thursday); subdued risk appetite (S&P 500 closed roughly flat at 1,946.17 overnight) as caution prevails before U.S. jobs report, while fewer-than-expected 287,000 U.S. jobless claims in week ended Sept. 27 (versus forecast 297,000) offsets bigger-than-expected 10.1% drop in U.S. August factory orders (versus forecast -9.3%) and positions adjustment before weekend.
Technical Comments:
Daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing but stochastics is turning bearish at overbought zone.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9615 and the second target at 0.9645. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9485. A break of this target would push the pair further downwards and one may expect the second target at 0.9455. The pivot point is at 0.9535.
Resistance levels:
0.9615
0.9645
0.9685
Support levels:
0.9485
0.9455
0.9415
The material has been provided by InstaForex Company – www.instaforex.com
Fundamental Overview:
USD/CHF is expected to consolidate with bullish bias as markets await U.S. non-farm payrolls report. USD/CHF is undermined by the broadly weaker USD undertone and spillover strength from rebounding EUR on CHF. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy and broadly weaker USD undertone (ICE spot dollar index last 85.62 versus 85.91 early Thursday); subdued risk appetite (S&P 500 closed roughly flat at 1,946.17 overnight) as caution prevails before U.S. jobs report, while fewer-than-expected 287,000 U.S. jobless claims in week ended Sept. 27 (versus forecast 297,000) offsets bigger-than-expected 10.1% drop in U.S. August factory orders (versus forecast -9.3%) and positions adjustment before weekend.
Technical Comments:
Daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing but stochastics is turning bearish at overbought zone.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9615 and the second target at 0.9645. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9485. A break of this target would push the pair further downwards and one may expect the second target at 0.9455. The pivot point is at 0.9535.
Resistance levels:
0.9615
0.9645
0.9685
Support levels:
0.9485
0.9455
0.9415
The material has been provided by InstaForex Company – www.instaforex.com
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