Overview:
USD/CHF is consolidating in a higher range after hitting one-and-a-half year low of 0.8989 Tuesday. USD/CHF is supported by the franc sales in the soft CHF/JPY cross, the franc sales in the buoyant EUR/CHF cross. But USD/CHF gains are tempered by negative dollar sentiment. Daily chart is mixed as MACD is bearish, stochastics stays suppressed at oversold, five- and 15-day moving averages are declining, but bullish outside-day-range pattern and bullish hammer candlestick pattern were completed Tuesday.
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, a long position is recommended with the first target at 0.909 and the second target at 0.9115. In alternative scenario, if the price moves below its pivot points short positions are recommended with the first target at 0.902. The breach of this target will move the pair further downwards and one may expect the second target at 0.899. The pivot point stands at 0.9045.
Resistance levels:
0.909
0.9115
0.9145
Support levels:
0.902
0.899
0.8945
