USD/CHF is expected to consolidate with bearish bias after hitting high an almost one-month low of 0.9552 on Tuesday as the market awaits the U.S. FOMC interest rate decision. USD/CHF is weighed by the weaker dollar sentiment, spillover from stronger euro sentiment on the franc and flows to haven CHF amid increased risk aversion. But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross and ultra-loose Swiss National Bank’s monetary policy.
The daily chart is negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9675 and the second target at 0.9720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9550. A break of this target would push the pair further downward, and one may expect the second target at 0.9520. The pivot point is at 0.9585.
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