Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a nine-and-a-half month high of 0.9197 on Monday. It is supported by the positive dollar sentiment, contagion from weak EUR on CHF and dovish Swiss National Bank's monetary policy as well as franc sales on rebounding EUR/CHF cross. But the CHF sentiment soothed by higher Switzerland August PMI of 52.9 versus forecast of 52.7. The daily chart is positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, 5 and 15-day moving averages are advancing.
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9230 and the second target at 0.9255. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9160. A break of this target would push the pair further downwards and one may expect the second target at 0.9135. The pivot point is at 0.9175.
Resistance levels:
0.9230
0.9255
0.9280
Support levels:
0.9160
0.9135
0.91
