Overview:
USD/CHF is trading with bullish bias. It is undermined by negative dollar sentiment, flows to the haven franc amid increased investor risk aversion, the franc demand in the weak EUR/CHF cross. But USD/CHF losses are tempered by the franc sales in the soft CHF/JPY cross. Data focus: 0715 GMT Switzerland September CPI, August retail sales. Daily chart is mixed as MACD is bearish, but stochastics is rising from oversold zone; the inside-day-range pattern was completed Monday.
Trading recommendations:
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 far as the price is above its pivot point, a long position is recommended with the first target at 0.906 and the second target at 0.908. In alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9 , the breach of this target will move the pair further downwards and one may expect the second target at 0.8975. The pivot point stands at 0.902.
Resistance levels:
0.906
0.908
0.91
Support levels:
0.9
0.8975
0.893