USD/CHF is expected to trade in a higher range after hitting a 16-month high 0.9741 on Friday. No FX reaction to in-line rise in Switzerland unemployment rate to 3.1% in October from 3.0% in September. USD/CHF is undermined by the weaker dollar sentiment. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy.
Daily chart is mixed as MACD is bullish but stochastics is turning bearish at overbought zone, bearish dark-cloud-cover candlestick pattern was completed on Friday.
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 0.97 and the second target at 0.9740. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.96. A break of this target would push the pair further downwards and one may expect the second target at 0.9570. The pivot point is at 0.9670.
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