Overview:
USD/CHF is going to consolidate with bearish bias after hitting the 9-month high of 0.9838 Wednesday. The currency pair is pressured by positive dollar sentiment, Swiss National Bank President Thomas Jordan announcement that the SNB is open to weakening its currency further against the euro and would even consider negative interest rates if such moves were necessary, and the franc sales on buoyant EUR/CHF cross. Daily chart is positively biased as MACD is bullish, stochastics are staying elevated at overbought area; five- and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9633 in view, breach of this target will move the pair further downward and you should expect the second target at 0.9576. Pivot point stands at 0.9725. In case the price moves in the opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.9775 and the second target at 0.9838.
Resistance Levels:
R1 - 0.9775
R2 - 0.9838 (Wednesday's high)
R3 - 0.9898 (Aug. 2, 2012 high)
Support Levels:
S1 - 0.9633 (Friday's low)
S2 - 0.9576 (May 16 low)
S3 - 0.9517 (May 14 low).
