Overview: USD/CHF is consolidating with bearish bias after hitting a 20-month low of 0.8908 Wednesday. USD/CHF is undermined by flows to the safe-haven franc amid increased risk aversion as concerns mount over China’s banking system liquidity; expectations that the Federal Reserve will continue its current pace of bond-buying well into 2014. But USD/CHF losses are tempered by the franc sales in the soft CHF/JPY cross. Daily chart is negative-biased as MACD and stochastics are bearish; 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 0.889 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: 0.889 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 0.8908 Wednesday. USD/CHF is undermined by flows to the safe-haven franc amid increased risk aversion as concerns mount over China’s banking system liquidity; expectations that the Federal Reserve will continue its current pace of bond-buying well into 2014. But USD/CHF losses are tempered by the franc sales in the soft CHF/JPY cross. Daily chart is negative-biased as MACD and stochastics are bearish; 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 0.889 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:
0.889
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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