Overview: USD/CHF is trading in higher range. CHF sentiment is weaker after Swiss National Bank on Thursday kept its target range for the three-month CHF Libor unchanged at 0%-0.25% for a 10th straight quarter and reiterated its pledge to intervene in currency markets to prevent the Swiss franc from strengthening beyond 1.20 per euro, and to take further measures if necessary to cap CHF strength. USD/CHF is also supported by positive dollar sentiment; the franc sales in the rebounding EUR/CHF cross. But USD/CHF gains are tempered by the franc demand in buoyant CHF/JPY cross amid weak yen sentiment; positions adjustment before weekend.
Technical comment: Daily chart is mixed as MACD is bearish, but stochastics turned bullish in the oversold 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 far as the price is above its pivot point, a long position is recommended with the first target at 0.8935 and the second target at 0.8955. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8845, The breach of this target will move the pair further downwards and one may expect the second target at 0.882. The pivot point stands at 0.8875.
Resistance levels: 0.8935 0.8955 0.8975
Support levels: 0.8845 0.882 0.88
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is trading in higher range. CHF sentiment is weaker after Swiss National Bank on Thursday kept its target range for the three-month CHF Libor unchanged at 0%-0.25% for a 10th straight quarter and reiterated its pledge to intervene in currency markets to prevent the Swiss franc from strengthening beyond 1.20 per euro, and to take further measures if necessary to cap CHF strength. USD/CHF is also supported by positive dollar sentiment; the franc sales in the rebounding EUR/CHF cross. But USD/CHF gains are tempered by the franc demand in buoyant CHF/JPY cross amid weak yen sentiment; positions adjustment before weekend.
Technical comment:
Daily chart is mixed as MACD is bearish, but stochastics turned bullish in the oversold 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 far as the price is above its pivot point, a long position is recommended with the first target at 0.8935 and the second target at 0.8955. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8845, The breach of this target will move the pair further downwards and one may expect the second target at 0.882. The pivot point stands at 0.8875.
Resistance levels:
0.8935
0.8955
0.8975
Support levels:
0.8845
0.882
0.88
The material has been provided by InstaForex Company – www.instaforex.com
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