Overview: USD/CHF is consolidating after hitting a four-day low 0.9236 Tuesday. The pair is undermined by flows to safe-haven franc amid increased risk aversion. But USD/CHF losses are tempered by franc sales on buoyant EUR/CHF cross amid positive euro sentiment. Daily chart is still negative-biased as MACD & stochastics are in the bearish mode.
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 positions are recommended with the first target at 0.9225 in view; a breach of this target will bring the pair downward further and you should expect the second target at 0.918. The pivot point stands at 0.93. In case the price moves in the opposite direction, returning from its support, and moves above its pivot point, then trading in a higher range is the most favorable and buying position above its pivot with the first target at 0.933 and the second target at 0.9355 is recommended.
Overview:
USD/CHF is consolidating after hitting a four-day low 0.9236 Tuesday. The pair is undermined by flows to safe-haven franc amid increased risk aversion. But USD/CHF losses are tempered by franc sales on buoyant EUR/CHF cross amid positive euro sentiment. Daily chart is still negative-biased as MACD & stochastics are in the bearish mode.
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 positions are recommended with the first target at 0.9225 in view; a breach of this target will bring the pair downward further and you should expect the second target at 0.918. The pivot point stands at 0.93. In case the price moves in the opposite direction, returning from its support, and moves above its pivot point, then trading in a higher range is the most favorable and buying position above its pivot with the first target at 0.933 and the second target at 0.9355 is recommended.
Support Levels:
S1 – 0.9225
S2 – 0.918
S3 – 0.9145
Resistance levels:
R1 – 0.933
R2 – 0.9355
R3 – 0.938
The material has been provided by InstaForex Company – www.instaforex.com