USD/CHF is expected to trade in a lower range. It is supported by the positive dollar sentiment (ICE spot dollar index last 94.70 versus 93.59 early Friday) after 257,000 increase in the US January non-farm payrolls (versus forecast +237,000) and 0.5% on-month increase in average hourly wages (versus forecast +0.3%), the negative Swiss interest rates as the SNB President Jordan said on Saturday the limit of the penalty rate that the CB is charging commercial banks to deposit funds “hasn’t yet been reached”. It is also boosted by the threat of the SNB CHF-selling intervention.
The daily chart is positive-biased as the MACD and stochastics are in bullish mode.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.9160. A break of this target will move the pair further downward to 0.9075. The pivot point stands at 0.9290. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.9365 and the second target at 0.9435.
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