USD/CHF is expected to consolidate with a bullish bias after hitting a six-week high 0.9750 on EBS Thursday as markets are awaiting U.S. nonfarm payrolls report. USD/CHF is underpinned by the broadly firmer dollar undertone, negative Swiss interest rates, and threat of Swiss National Bank CHF-selling intervention. But USD/CHF gains are tempered by the positions adjustment ahead of the weekend.
The daily chart us positive-biased as MACD and stochastics are bullish, although the latter is at the 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 0.9785 and the second target at 0.9820. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9580. A break of this target would push the pair further downwards, and one may expect the second target at 0.9530. The pivot point is at 0.9640.
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