Overview:
USD/CHF is expected to consolidate with bullish bias after hitting four-day high at 0.9011 on Wednesday. It is supported by the dovish Swiss National Bank's monetary policy stance and franc sales on soft CHF/JPY cross. But USD/CHF upside is limited by the franc demand on soft EUR/CHF cross. Daily chart is mixed as MACD is in the bearish mode, but stochastics is turned bullish.
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 0.9015 and the second target at 0.9035. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8940. A breach of this target will push the pair further downwards and one may expect the second target at 0.8905. The pivot point is at 0.8965.
Resistance levels:
0.9015
0.9035
0.9085
Support levels:
0.8940
0.8905
0.8875
