Overview: USD/CHF is consolidating with bearish bias after hitting a two-year low of 0.8848 Tuesday. It is undermined by negative USD sentiment; flows to haven CHF amid increased risk aversion; franc demand in soft EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold area; the 5- 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 0.884 in view; a breach of this target will move the pair further downwards to 0.882. The pivot point stands at 0.891. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.8935 and the second target at 0.8955.
Resistance levels: 0.884 0.8815 0.8785 Support levels: 0.8935 0.8955 0.8985
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is consolidating with bearish bias after hitting a two-year low of 0.8848 Tuesday. It is undermined by negative USD sentiment; flows to haven CHF amid increased risk aversion; franc demand in soft EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold area; the 5- 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 0.884 in view; a breach of this target will move the pair further downwards to 0.882. The pivot point stands at 0.891. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.8935 and the second target at 0.8955.
Resistance levels:
0.884
0.8815
0.8785
Support levels:
0.8935
0.8955
0.8985
The material has been provided by InstaForex Company – www.instaforex.com
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