Overview:
The USD/CHF is to consolidate with bullish bias as markets await the U.S. non-farm payrolls report. The pair is underpinned by positive USD sentiment. But the USD/CHF gains tempered by CHF demand on soft EUR/CHF cross; positions adjustment before weekend. The USD/CHF underpinned by improved USD sentiment after surprise 18,000 drop in latest U.S weekly jobless claims to five-year-low of 324,000 (vs 345,000 forecast), bigger-than-expected 11% contraction in the U.S. trade deficit to $38.83 billion in March (vs $42.1 billion forecast), strong rise in ISM-New York's Current Business Conditions Index to 58.3 in April from 51.2 in March. Daily chart mixed as the MACD bearish, but stochastics turning neutral.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 0.9384 and the second target at 0.9429. You should keep in view short position below the pivot keep of the first target at 0.9261, breach of this target will move the pair downward further and expect the second target at 0.9244. The pivot point stands at 0.931.
Resistance levels:
R1 - 0.9384 (Tuesday's high)
R2 - 0.9429 (Monday's high)
R3 - 0.9455 (April 26 high)
Support levels:
S1 - 0.9261 (Thursday's low)
S2 - 0.9244 (Wednesday's low)
S3 - 0.9204 (April 16 reaction low)
