USD/CHF is expected to trade in higher range.It is supported by the Swiss National Bank’s announcement on Thursday on charging a negative interest rate of 0.25% on deposits from January 22 to cool the strength of the Swiss franc. USD/CHF is also buoyed by the positive dollar sentiment and the franc sales on cross trades versus major currencies.
The daily chart is positive-biased as the MACD and stochastics are bullish, 5- 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 0.9850 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 0.9775.
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