USD/CHF is expected to consolidate in a lower range after hitting almost a two-month high of 1.0128 on Thursday. USD/CHF is undermined by weaker dollar sentiment and franc demand on the buoyant CHF/JPY cross. The USD/CHF losses are tempered by the negative Swiss interest rates, the threat of the Swiss National Bank to carry out CHF-selling intervention, and positions adjustment ahead of the weekend.
The daily is chart mixed as the MACD is bullish, 5- and 15-day moving averages are advancing, but stochastics has turned bearish at overbought levels.
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 1.0120 and the second target at 1.0160. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9950. A break of this target would push the pair further downwards, and one may expect the second target at 0.9875. The pivot point is at 0.9990.
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