Overview:
USD/CHF is trading in lower range. The rate is supported by positive dollar sentiment; franc sales on weak CHF/JPY cross. But CHF sentiment was boosted by rise in Switzerland ZEW-Credit Suisse indicator of economic sentiment to three-and-a-half year of 31.6 in November from 24.9 in October. Daily chart is mixed as stochastics is bearish; but MACD is in bullish mode, bullish outside-day-range pattern was completed on Wednesday.
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 0.912 in view; a breach of this target will move the pair further downwards to 0.909. The pivot point stands at 0.92. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, 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 0.9225 and the second target at 0.9245.
Resistance levels:
0.9225
0.9245
0.9285
Support levels:
0.9120
0.909
0.906
