Fundamental Overview:
USD/CHF is expected to consolidate with bullish bias after hitting one-year high 0.9433 this morning as markets await 0730 GMT Swiss National Bank's interest rate decision and SNB is expected to keep rates unchanged and maintain its currency limit of 1.2 franc per euro. CHF sentiment are dented by the drop in ZEW-Credit Suisse Switzerland indicator of economic sentiment to minus 7.7 in September from plus 2.5 in August. USD/CHF is also supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross.
Technical Comments:
Daily chart is positive-biased as MACD is bullish, stochastics is reverted to bullish mode at overbought zone, five and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9345. A break of this target will move the pair further downwards to 0.9320. The pivot point stands at 0.94. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9435 and the second target at 0.9460.
Resistance levels:
0.9435
0.9460
0.9480
Support levels:
0.9345
0.9320
0.93
