FX.co ★ USD/CHF: upside (July 5,2013)

Overview:
The USD/CHF is to consolidate with bullish bias after hitting one-month high of 0.9583 Thursday as markets await U.S. non-farm payrolls report. The USD/CHF underpinned by weaker sentiment for European currencies after the BOE and ECB Thursday offered dovish forward guidance on interest rates. But the USD/CHF upside limited by Swiss franc short-covering as market participants trim exposure ahead of U.S. employment report; positions adjustment before weekend.

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 0.9625 and the second target at 0.9675. You should keep in view short position below the pivot keep of the first target at 0.9675 , the breach of this target will move the pair downward further and expect the second target at 0.9455. The pivot point stands at 0.9515.

Resistance levels:
R1 - 0.9625
R2 - 0.9675
R3 - 0.97

Support levels:
S1 - 0.9485
S2 - 0.9455
S3 - 0.9425