USD/CHF is expected to trade in higher range.It is underpinned by the positive dollar sentiment (ICE spot dollar index last 85.98 versus 85.41 early Wednesday) after the Federal Reserve confirmed the end of its monthly bond-buying program and delivered a slightly more-hawkish-than-expected policy statement as it offered a relatively optimistic assessment of the outlook for the U.S. labor market and economy, franc sales on soft CHF/JPY cross and dovish Swiss National Bank’s monetary policy.
Daily chart is mixed as MACD is bearish but stochastics is reverted to bullish mode, bullish outside-day-range pattern was completed on Wednesday.
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 0.9590 and the second target at 0.9620. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9495. A break of this target would push the pair further downwards and one may expect the second target at 0.9465. The pivot point is at 0.9525.
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