Overview: USD/CHF is trading with risks skewed higher. The rate is supported by profit-taking on short-USD/CHF positions before U.S. FOMC monetary policy decision Wednesday; franc sales on buoyant EUR/CHF cross. But USD/CHF gains are tempered by expectations that the Federal Reserve will continue its ultra-loose monetary policy well into 2014. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining; but stochastics is turning bullish at oversold.
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. A short position is recommended with the first target at 0.889 in view; a breach of this target will move the pair further downwards to 0.8870. The pivot point stands at 0.9. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.9035 and the second target at 0.9065.
Support levels: 0.889 0.8870 0.8830
Resistance levels: 0.9035 0.9065 0.91
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is trading with risks skewed higher. The rate is supported by profit-taking on short-USD/CHF positions before U.S. FOMC monetary policy decision Wednesday; franc sales on buoyant EUR/CHF cross. But USD/CHF gains are tempered by expectations that the Federal Reserve will continue its ultra-loose monetary policy well into 2014. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining; but stochastics is turning bullish at oversold.
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. A short position is recommended with the first target at 0.889 in view; a breach of this target will move the pair further downwards to 0.8870. The pivot point stands at 0.9. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.9035 and the second target at 0.9065.
Support levels:
0.889
0.8870
0.8830
Resistance levels:
0.9035
0.9065
0.91
The material has been provided by InstaForex Company – www.instaforex.com
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