USD/CHF is expected to consolidate with bearish bias after hitting almost a two-month high of 1.0107 Wednesday. 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 overbought levels. Five and 15-day moving averages are advancing.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.9950. A break of that target will move the pair further downwards to 0.9875. The pivot point stands at 1.0065. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 1.0120 and the second target at 1.0160.
Uitgevoerd door, Analytische expert
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