FX.co ★ Technical analysis of USD/CHF for July 08, 2014

Overview:

USD/CHF is expected to consolidate after hitting two-week high at 0.8959 on Monday. CHF sentiment is boosted by the improvement in Switzerland unemployment rate to 2.9% in June from 3.0% in May. But USD/CHF downside is limited by the franc sales on buoyant EUR/CHF cross and on soft CHF/JPY cross. Daily chart is still positive-biased as stochastics is bullish, negative MACD histogram bars are contracting, five-day moving average is rising above 15-day MA. 

Trading recommendation: 

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 0.8960 and the second target at 0.8975. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8880. A breach of this target would push the pair further downwards and one may expect the second target at 0.8860. The pivot point is at 0.8925.

Resistance levels: 
0.8960 
0.8975 
0.90

Support levels: 
0.8880 
0.8860 
0.8840