USD/CHF is expected to consolidate with bullish bias after hitting a six-week high of 0.9625 on Tuesday. It is underpinned by the negative Swiss interest rates and by the threat of the Swiss National Bank to carry out CHF-selling intervention. The Swissie sentiment is boosted by the stronger-than-expected on-year expansion of 1.9% in Switzerland’s GDP in 4Q (versus forecast +1.8%).
The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels. 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 0.9670 and the second target at 0.9705. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9530. A break of this target would push the pair further downwards, and one may expect the second target at 0.9495. The pivot point is at 0.9570.
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