Overview: USD/CHF is consolidating with bearish bias after hitting a seven-month low of 0.9075 Wednesday. Undermined by weaker dollar sentiment. But USD/CHF downside is limited by the franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross. Daily chart is negative-biased as bearish outside-day-range pattern has been completed Wednesday; MACD is bearish; stochastics stays suppressed and oversold; five- and 15-day moving averages are declining.
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 0.9075 in view; a breach of this target will move the pair further downwards to 0.905. The pivot point stands at 0.9115. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further upside, In that scenario a long position is recommended with the first target at 0.9135 and the second target at 0.917.
Support levels: 0.9075 0.905 0.90
Resistance levels: 0.9135 0.917 0.92
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is consolidating with bearish bias after hitting a seven-month low of 0.9075 Wednesday. Undermined by weaker dollar sentiment. But USD/CHF downside is limited by the franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross. Daily chart is negative-biased as bearish outside-day-range pattern has been completed Wednesday; MACD is bearish; stochastics stays suppressed and oversold; five- and 15-day moving averages are declining.
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 0.9075 in view; a breach of this target will move the pair further downwards to 0.905. The pivot point stands at 0.9115. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further upside, In that scenario a long position is recommended with the first target at 0.9135 and the second target at 0.917.
Support levels:
0.9075
0.905
0.90
Resistance levels:
0.9135
0.917
0.92
The material has been provided by InstaForex Company – www.instaforex.com
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