USD/CHF is expected to trade in a higher range. It is undermined by the broadly weaker dollar (ICE spot dollar index last 87.57 versus 87.78 early Tuesday). The undertone and franc demand on buoyant CHF/JPY cross amid the weak yen sentiment. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy.
Daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing but stochastics is bearish at the 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 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 0.9580. A break of this target would push the pair further downwards and one may expect the second target at 0.9540. The pivot point is at 0.9610.
The material has been provided by InstaForex Company – www.instaforex.com