USD/CHF is expected to consolidate as markets await the US FOMC interest rate decision. USD/CHF is supported by the negative Swiss interest rates and the threat of the Swiss National Bank to carry out CHF-selling intervention. The USD/CHF upside is limited by the caution before the FOMC decision.
The daily chart is still 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 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 0.999. A break of that target will move the pair further downwards to 0.9950. The pivot point stands at 1.0090. 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 1.0120 and the second target at 1.0170.
The material has been provided by InstaForex Company – www.instaforex.com