USD/CHF is expected to trade in higher range.It is underpinned by the positive dollar sentiment (ICE spot dollar index last 87.77 versus 87.52 early Monday) as investors renewed their bets that the U.S. economy will continue to strengthen faster than other major economies, while U.S. Treasury yields rose overnight ahead of U.S. bond markets closure for Veterans Day on Tuesday (10-year at 2.360% versus 2.312% late Friday) and dovish Swiss National Bank’s monetary policy. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross.
Daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing but stochastics is bearish in the overbought zone.
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 0.9650.
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