Overview:
USD/CHF is expected to consolidate with the bullish bias after hitting six-day high at 0.8952 on Friday. It is supported by the positive dollar sentiment and franc sales on buoyant EUR/CHF cross and on weaker CHF/JPY cross. The Daily chart is positive-biased as stochastics is rising from the oversold zone, negative MACD histogram bars are contracting.
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 0.8925.
Resistance levels:
0.8960
0.8975
0.90
Support levels:
0.8880
0.8860
0.8840
