Overview: USD/CHF is consolidating with bearish bias after hitting a 20-month low of 0.8937 Tuesday. USD/CHF is undermined by negative dollar sentiment; the franc demand in the buoyant CHF/JPY cross; the franc demand in the soft GBP/CHF, AUD/CHF and CAD/CHF crosses. Daily chart is negative-biased as stochastics is bearish; MACD histogram bars turned negative; the 5-day moving average is below the 15-day MA and 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 0.8895 in view; a breach of this target will move the pair further downwards to 0.885. The pivot point stands at 0.9005. 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 0.9035 and the second target at 0.9065.
Support levels: 0.8895 0.885 0.88
Resistance levels: 0.9035 0.9065 0.91
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
USD/CHF is consolidating with bearish bias after hitting a 20-month low of 0.8937 Tuesday. USD/CHF is undermined by negative dollar sentiment; the franc demand in the buoyant CHF/JPY cross; the franc demand in the soft GBP/CHF, AUD/CHF and CAD/CHF crosses. Daily chart is negative-biased as stochastics is bearish; MACD histogram bars turned negative; the 5-day moving average is below the 15-day MA and 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 0.8895 in view; a breach of this target will move the pair further downwards to 0.885. The pivot point stands at 0.9005. 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 0.9035 and the second target at 0.9065.
Support levels:
0.8895
0.885
0.88
Resistance levels:
0.9035
0.9065
0.91
The material has been provided by InstaForex Company – www.instaforex.com
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