Overview: USD/CHF is consolidating after hitting three-day low of 0.9172 Tuesday as markets await U.S. FOMC interest rate decision. Swiss franc sentiment boosted after Switzerland’s lower house of Parliament voted 126-67 against a plan which would allow the country’s banks to skirt Switzerland’s banking secrecy law and hand information to the U.S. Department of Justice about the undeclared holdings of their American clients as well as bank employees who assisted them. But USD/CHF downside is limited by reduced safe-haven appeal of franc amid positive investor risk sentiment. Daily chart is still negative-biased as MACD is bearish, stochastics is staying suppressed at oversold, 5- and 15-day moving averages are falling.
Trading recommendation: The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.917 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9125. Pivot point stands at 0.923. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.927 and the second target at 0.93.
Overview:
USD/CHF is consolidating after hitting three-day low of 0.9172 Tuesday as markets await U.S. FOMC interest rate decision. Swiss franc sentiment boosted after Switzerland’s lower house of Parliament voted 126-67 against a plan which would allow the country’s banks to skirt Switzerland’s banking secrecy law and hand information to the U.S. Department of Justice about the undeclared holdings of their American clients as well as bank employees who assisted them. But USD/CHF downside is limited by reduced safe-haven appeal of franc amid positive investor risk sentiment. Daily chart is still negative-biased as MACD is bearish, stochastics is staying suppressed at oversold, 5- and 15-day moving averages are falling.
Trading recommendation:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.917 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9125. Pivot point stands at 0.923. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.927 and the second target at 0.93.
Resistance levels:
R1 – 0.927
R2 – 0.93
R3 – 0.9335
Support levels:
S1 – 0.917
S2 – 0.9125
S3 – 0.9075
The material has been provided by InstaForex Company – www.instaforex.com
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