USD/CHF is expected to consolidate with bullish bias after hitting almost the three-month high of 0.9651 this morning. The pair is underpinned by the positive dollar sentiment, the threat of the Swiss National Bank to carry out CHF-selling intervention, the negative Swiss interest rates, and the franc sales on the rebounding EUR/CHF cross.
The daily chart is positive-biased as the MACD and stochastics are bullish, although latter is at overbought levels. Five and 15-day moving averages are advancing.
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 0.9655 and the second target at 0.9690. In the alternative scenario, short positions are recommended with the first target at 0.9535 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 0.95. The pivot point is at 0.9570.
Resistance levels: 0.9655 0.9690 0.9745
Support levels: 0.9535 0.95 0.9450
The material has been provided by InstaForex Company – www.instaforex.com