Fundamental overview:
USD/CHF is expected to consolidate with bullish bias after hitting near-16-month high 0.9738 on Thursday. CHF sentiment is dented by the weaker-than-expected Switzerland 3Q consumer sentiment index of minus 11.0 (versus forecast minus 5.0 and 2Q's minus 1.0). USD/CHF is also supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy and contagion from weak EUR on CHF. But USD/CHF gains are tempered by the positions adjustment before weekend.
Technical comments:
Daily chart is positive-biased as MACD indicator is bullish, slow stochastic measure stays elevated at overbought levels, five-day moving average is above 15-day moving average and is 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 0.9750 and the second target at 0.9775. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9630. A break of this target would push the pair further downwards and one may expect the second target at 0.96. The pivot point is at 0.9660.
Resistance levels:
0.9750
0.9775
0.98
Support levels:
0.9630
0.96
0.9570
