Overview:
USD/CHF is expected to consolidate with bullish bias as markets await U.S. non-farm payrolls report. USD/CHF is supported by the positive dollar sentiment. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining, but stochastics is turning bullish at oversold zone.
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 0.8960 and the second target at 0.8975. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8880. A breach of this target would push the pair further downwards and one may expect the second target at 0.8860. The pivot point is at 0.8900.
Resistance levels:
0.8960
0.8975
0.90
Support levels:
0.888
0.8860
0.8840
