Overview:
USD/CHF is consolidating with bearish bias after hitting six-week low of 0.9225 Wednesday. Financial markets in Switzerland are shut today for Swiss National Day. USD/CHF is undermined by weaker USD sentiment; franc demand on soft GBP/CHF and AUD/CHF crosses; better-than-expected Switzerland July KOF economic barometer (came in at 1.23 versus 1.21 forecast). But USD/CHF losses are tempered by caution ahead of Friday’s U.S. July Non-Farm Payrolls jobs report. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold, 5- and 15-day moving averages are falling.
Trading recommendation:
The pair is trading below its pivot point. It is is likely to trade in lower range as far as it remains below its pivot point. The short position is recommended with the first target at 0.925 in view; the breach of this target will move further the pair downward and you should expect the second target at 0.921. The pivot point stands at 0.93. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.934 and the second target at 0.937.
Support levels:
S1 – 0.925
S2 – 0.921
S3 – 0.9175
Resistance levels:
R1 – 0.934
R2 – 0.937
R3 – 0.94
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2013 |
USD/CHF: Bearish bias (Aug 01,2013)
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