USD/CHF is expected to consolidate with bullish bias. It is underpinned by the comments of Swiss National Bank chairman Thomas Jordan that the Swiss franc remains «significantly overvalued» and the central bank had no easy fix for the problems the strong currency was causing to Switzerland. USD/CHF is also supported by the franc sales on the buoyant EUR/CHF cross, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.
Tbe daily chart is positive-biased as the MACD and stochastics are bullish, five-day moving average is rising above 15-day moving average.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9640 and the second target at 0.9690. In the alternative scenario, short positions are recommended with the first target at 0.9470 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9440. The pivot point is at 0.95.
Resistance levels: 0.9640 0.9690 0.9745
Support levels: 0.9470 0.9440 0.94
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