USD/CHF is expected to consolidate with bullish bias after hitting a two-year high 0.9848 on Thursday. CHF sentiment was hurt after the Swiss National Bank said on Thursday it would charge a negative interest rate of 0.25% on deposits from January 22 to cool the strength of the Swiss franc. USD/CHF is also supported by positive dollar sentiment and franc sales on cross trades versus major currencies. But USD/CHF gains are tempered by the positions adjustment before the weekend.
The daily chart is positive-biased as stochastics is in bullish mode, the MACD is turning bullish; five- and 15-day moving averages are advancing.
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 0.9840 and the second target at 0.9890. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9715. A break of this target would push the pair further downward, and one may expect the second target at 0.9660. The pivot point is at 0.9055.
The material has been provided by InstaForex Company – www.instaforex.com