Overview:
USD/CHF is expected to consolidate with bullish bias after hitting five-week high at 0.8927 on Thursday as markets await U.S. non-farm payrolls report. USD/CHF is underpinned by the broadly stronger dollar undertone, dovish Swiss National Bank's monetary policy stance and franc sales on buoyant EUR/CHF cross. But USD/CHF gains are tempered by the positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought, five and 15-day moving averages are advancing.
Trading recommendation:
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 0.8940 and the second target at 0.8960. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8875. A breach of this target will push the pair further downwards and one may expect the second target at 0.8850. The pivot point is at 0.8900.
Resistance levels:
0.8940
0.8960
0.8995
Support levels:
0.8875
0.8850
0.8835
