USD/CHF is expected to trade in a higher range. It is underpinned by the positive dollar sentiment and ultra-loose Swiss National Bank’s monetary policy. But CHF sentiment is boosted by the rise in Switzerland ZEW-Credit Suisse economic sentiment indicator to minus 4.9 in December from minus 7.6 in November. USD/CHF gains are also tempered by the franc demand on buoyant CHF/JPY cross.
Daily chart is mixed as MACD is bearish, but stochastics is turned bullish near oversold levels.
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 0.9755 and the second target at 0.9785. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9605. A break of this target would push the pair further downward, and one may expect the second target at 0.9585. The pivot point is at 0.9645.
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