Overview:
USD/CHF is going to consolidate after hitting one-month low at 0.9025 Friday. The Swiss franc sentiment boosted by better-than-expected rise in Switzerland KOF economic barometer to 1.85 in November (versus forecast 1.84) from 1.72 in October. USD/CHF was also undermined by the franc demand on the CHF/JPY cross amid weak yen sentiment. Daily chart is mixed as the five-day moving average is below the 15-day MA and declining, MACD is bearish; but stochastics is turning bullish at oversold area, bullish Hammer candlestick pattern is completed Friday.
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 0.913 is in view; a breach of this target will move the pair further downwards to 0.915. The pivot point stands at 0.9055. 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 0.9025 and the second target at 0.899.
Resistance levels:
0.913
0.915
0.917
Support levels:
0.9025
0.899
0.896
