Overview: USD/CHF is consolidating with bearish bias after hitting one-week high of 0.9436 on Tuesday. The rate is underpinned by CHF sales on buoyant EUR/CHF cross; smaller-than-expected rise in 2Q Swiss Consumer Sentiment Index to minus 5 from minus 6 in 1Q (vs. forecast of minus 3). But CHF sentiment is soothed by improvement in Swiss jobless rate to 3.1% in April from 3.2% in March. Daily chart is positive-biased as MACD and stochastics are bullish; five-day moving average is rising above 15-day MA.
Trading recommendations:
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 0.9334 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9309. Pivot point stands at 0.942. 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 0.9436 and the second target at 0.9455.
Overview:
USD/CHF is consolidating with bearish bias after hitting one-week high of 0.9436 on Tuesday. The rate is underpinned by CHF sales on buoyant EUR/CHF cross; smaller-than-expected rise in 2Q Swiss Consumer Sentiment Index to minus 5 from minus 6 in 1Q (vs. forecast of minus 3). But CHF sentiment is soothed by improvement in Swiss jobless rate to 3.1% in April from 3.2% in March. Daily chart is positive-biased as MACD and stochastics are bullish; five-day moving average is rising above 15-day MA.
Trading recommendations:
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 0.9334 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9309. Pivot point stands at 0.942. 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 0.9436 and the second target at 0.9455.
Resistance levels:
R1 – 0.9436 (Tuesday’s high)
R2 – 0.9455 (April 26 high)
R3 – 0.9483 (April 25 high)
Support levels:
S1 – 0.9334 (Monday’s low)
S2 – 0.9309 (Friday’s low)
S3 – 0.9265
The material has been provided by InstaForex Company – www.instaforex.com
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