Overview:
USD/CHF is consolidating with bearish bias after hitting a near-one-month high of 0.9177 Tuesday. It is undermined by weak dollar sentiment; flows to the haven franc amid increased investor risk aversion. But USD/CHF losses are tempered by the franc sales in the soft CHF/JPY cross. Data focus: 0900 GMT Switzerland October ZEW-Credit Suisse indicator of economic sentiment. Daily chart is mixed as MACD is bullish, but stochastics turned bearish at overbought.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.909 in view; a breach of this target will move the pair further downwards to 0.906. The pivot point stands at 0.9175. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 0.9215 and the second target at 0.9245.
Support levels:
0.909
0.906
0.903
Resistance levels:
0.9215
0.9245
0.9285
