Fundamental Overview:
USD/CHF is expected to consolidate in higher range after hitting 11-month high 0.9690 on Monday. USD/CHF is undermined by the broadly softer USD undertone, CHF demand on soft GBP/CHF cross and buoyant CHF/JPY cross. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy and franc sales on buoyant EUR/CHF cross.
Technical Comments:
Daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing, stochastics stays elevated at overbought zone but bearish dark-cloud-cover candlestick pattern was completed on Monday.
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 0.9625 and the second target at 0.9665. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9515. A break of this target would push the pair further downwards and one may expect the second target at 0.9485. The pivot point is at 0.9570.
Resistance levels:
0.9625
0.9665
0.9695
Support levels:
0.9515
0.9485
0.9455
