FX.co ★ USD/CHF: Upside prevails

Overview:
USD/CHF is in range-trade. The rate is undermined by soft U.S. economic data; franc demand on retreating EUR/CHF cross. But USD/CHF downside is limited by renewed speculation that Federal Reserve might taper its bond-buying program in coming months; positions adjustment before weekend. Daily chart is mixed as MACD is bullish, 5- and 15-day moving averages are rising; but stochastics has turned bearish at overbought.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favorable and buy position is recommended above its pivot with the first target at 0.9809 and the second target at 0.986. You should keep in view short position below the pivot keep of the first target at 0.9625, breach of this target will move the pair downward further and expect the second target at 0.959. The pivot point stands at 0.966 .

Support levels:
S1 - 0.9625
S2 - 0.959
S3 - 0.9576 (Thursday's low)

Resistance levels:
R1 - 0.9809 (Aug. 10, 2012 high)
R2 - 0.986
R3 - 0.9898 (Aug. 2, 2012 high)