USD/CHF is expected to trade with bullish bias. It is underpinned by the bullish dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. The pair is also supported by franc sales on the buoyant AUD/CHF, NZD/CHF, CAD/CHF, GBP/CHF crosses and on the soft CHF/JPY cross. But USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross.
The daily chart is positive-biased as THE MACD and stochastics are turned bullish, bullish parabolic stop-and-reverse signal hit on Tuesday.
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 0.9380 and the second target at 0.9420. In the alternative scenario, short positions are recommended with the first target at 0.9205 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 0.9155. The pivot point is at 0.9250.
Resistance levels: 0.9380 0.9420 0.9460
Support levels: 0.9205 0.9155 0.9115
The material has been provided by InstaForex Company – www.instaforex.com