USD/CHF is expected to consolidate with bullish bias after hitting almost a two-month high of 1.0000 on EBS on Tuesday. USD/CHF is underpinned by the bullish dollar sentiment, the negative Swiss interest rates, the threat of the Swiss National Bank to carry out CHF-selling intervention, and franc sales on the soft CHF/JPY cross.
The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter is at the overbought levels. Five- and 15-day moving averages are advancing.
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 1.0120 and the second target at 1.0160. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9875. A break of this target would push the pair further downwards, and one may expect the second target at 0.9820. The pivot point is at 0.9950.
Uitgevoerd door, Analytische expert
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