Fundamental overview:
USD/CHF is expected to consolidate with bullish bias. The swissie is weakt as the Swiss National Bank maintained its deposit rate at minus 0.75% on Thursday, lowered its 2015 and 2016 inflation forecast, and said it remained committed to prevent the Swiss franc from appreciating. USD/CHF is also supported by the improved dollar sentiment, negative Swiss interest rates and threat of the Swiss National Bank CHF-selling intervention, and Swissie sales on soft CHF/JPY cross. But USD/CHF gains are tempered by the positions adjustment ahead of weekend.
Technical comment:
The daily chart is tilting negative as stochastics falling from overbought levels, the MACD is staging bearish crossover against its exponential moving average, although the inside-day-range pattern was completed on Thursday.
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 the pivot point. Short positions are recommended with the first target at 0.9850. A break of that target will move the pair further downwards to 0.9760. The pivot point stands at 1. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 1.009 and the second target at 1.0120.
Resistance levels:
1.009
1.0120
1.0160
Support levels:
0.9850
0.9765
0.97
