USD/CHF is expected to consolidate with bullish bias after hitting almost a one-month highof 0.9457 on Friday. Financial markets in Switzerland were closed for a public holiday. USD/CHF is underpinned by the positive dollar sentiment, 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 franc demand on the soft EUR/CHF cross.
The daily chart is positive-biased as bullish outside-day-range pattern was completed on Friday. The MACD and stochastics are bullish, although the latter is at overbought levels. 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 0.95 and the second target at 0.9550. In the alternative scenario, short positions are recommended with the first target at 0.9280 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 0.9215. The pivot point is at 0.9350.
The material has been provided by InstaForex Company – www.instaforex.com