We will retain our yesterday's forecast about USD/CHF. The pair is still expected to trade in a higher range. Despite the recent pullback from 0.9995 (the high of October 31), the pair is still supported by a rising trend line since October 30. The rising 50-period moving average is playing a support role. The relative strength index lacks downward momentum.
The U.S. dollar held steady while economic data released were upbeat and investors were waiting for the Fed's announcement after its two-day meeting as well as the official October jobs report due Friday. The ICE Dollar Index closed at 94.55, compared with 94.56 Monday.
Hence, above 0.9960, look for a rebound with targets at 1.0030 and 1.0050 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 0.9960, Take Profit: 1.0030
Resistance levels: 1.0030, 1.0050, and 1.0075
Support levels: 0.9935, 0.9900, and 0.9850
