OvervieW:
USD/CHF is trading in higher range. The rate is underpinned by bullish dollar sentiment; franc sales on buoyant EUR/CHF cross. But CHF sentiment boosted by rise in Switzerland ZEW-Credit Suisse indicator of economic sentiment to three-and-a-half year high of 39.4 in December from 31.6 in November. USD/CHF gains are also tempered by franc demand on buoyant CHF/JPY cross. Daily chart is positive-biased as stochastics rising from oversold; MACD is staging bullish crossover against its exponential moving average.
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 0.898 and the second target at 0.901. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8895. The breach of this target will move the pair further downwards and one may expect the second target at 0.8855. The pivot point stands at 0.8915.
Resistance levels:
0.898
0.901
0.904
Support levels:
0.8895
0.8855
0.8825