USD/CHF is expected to consolidate in a higher range after hitting a three-week low of 0.9226 on Wednesday. It is underpinned by franc sales on the buoyant EUR/CHF cross and soft CHF/JPY cross amid bullish yen sentiment, negative Swiss interest rates, and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment: The daily chart is mixed as the MACD is bearish, but stochastics is turning bullish at oversold levels.
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 0.9420 and the second target at 0.9475. In the alternative scenario, short positions are recommended with the first target at 0.9230 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 0.9170. The pivot point is at 0.9290.
Resistance levels: 0.9420 0.9475 0.9525
Support levels: 0.9230 0.9170 0.9115
The material has been provided by InstaForex Company – www.instaforex.com