USD/CHF is to consolidate with bullish bias. The pair is underpinned by the negative Swiss interest rates, the threat of the Swiss National Bank to carry out CHF-selling intervention, and positive dollar sentiment (ICE spot dollar index hit 12-year high 100.42 this morning, last 100.25 versus 99.27 early Friday) as expectations prevailed that the Federal Reserve could raise the interest rates midyear.
The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated 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 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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