USD/CHF is expected to trade in a lower range as markets await FOMC October meeting minutes (due at 1900 GMT) for details on the monetary policy committee’s outlook on health of U.S. economy and Federal Reserve’s intentions for interest rates.It is undermined by the spillover strength from euro on the Swiss Franc and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy.
Daily chart is negative-biased as MACD and stochastics bearish, five-day moving average is falling below 15-day moving average.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9555. A break of this target will move the pair further downwards to 0.9555. The pivot point stands at 0.9620. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9655 and the second target at 0.9690.
The material has been provided by InstaForex Company – www.instaforex.com