Overview:
USD/CHF is consolidating with bullis bias after hitting two-year low 0.8831 on Tuesday as markets await 19:00 GMT U.S. FOMC interest rate decision. USD/CHF is undermined by franc demand on weak EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics reverted to bearish mode at oversold; five- and 15-day moving averages are declining.
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 0.891 and the second target at 0.8935. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.883. The breach of this target will move the pair further downwards and one may expect the second target at 0.8805. The pivot point stands at 0.8855.
Resistance levels:
0.891
0.8935
0.896
Support levels:
0.883
0.8805
0.8775
