Overview:
USD/CHF is trading with bullish bias. The rate is undermined by weaker dollar sentiment; rise in Switzerland August ZEW-Credit Suisse indicator of economic sentiment to four-month high of 7.2 in August from 4.8 in July. But USD/CHF downside is limited by franc sales on soft CHF/JPY amid negative risk appetite; franc sales on buoyant EUR/CHF cross. Daily chart is still positive-biased as MACD and stochastics are bullish; five-day moving average is rising above 15-day MA.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a 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 favorable and buy position is recommended above its pivot, with the first target at 0.9405 and the second target at 0.9425. You should keep in view short position below the pivot keeps the first target at 0.93, breach of this target will move the pair downward further and one may expect the second target at 0.928. The pivot point stands at 0.936.
Resistance levels:
R1 - 0.9405
R2 - 0.9425
R3 - 0.9475
Support levels:
S1 - 0.93
S2 - 0.928
S3 - 0.925
