USD/CHF is expected to consolidate with a bullish bias after hitting a six-week high of 0.9515 on Tuesday. It is supported by the broadly firmer dollar undertone (ICE spot dollar index last 96.68 versus 96.25 early Tuesday) as markets are awaiting futher developments in Greece’s negotiations with the European Union for emergency financing, the threat of Swiss National Bank CHF-selling intervention, and negative Swiss interest rates.
The daily chart is positive-biased as the MACD is bullish, stochastics is reverting to bullish mode at overbought levels, five-day moving average is above 15-day moving average and is advancing.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9390. A break of that target will move the pair further downwards to 0.9360. The pivot point stands at 0.9475. 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, long positions are recommended with the first target at 0.9515 and the second target at 0.9540.
Resistance levels: 0.9515 0.9540 0.96
Support levels: 0.9390 0.9360 0.9315
The material has been provided by InstaForex Company – www.instaforex.com