FX.co ★ Technical analysis of USD/CHF for October 01, 2014

Fundamental Overview:

USD/CHF is expected to consolidate with a bullish bias after hitting a 14-month high 0.9597 on Tuesday. It is supported by the positive dollar sentiment (ICE spot dollar index hit four-year-high 86.218 Tuesday, last at 85.93 versus 85.62 early Tuesday) on relatively hawkish Federal Reserve's monetary policy and outperformance of the U.S. economy versus other major economies, contagion from weak EUR on CHF and dovish Swiss National Bank's monetary policy.

Technical Comments:
Daily chart is positive-biased as MACD is bullish, stochastics stays elevated at the overbought zone, five and 15-day moving averages are advancing.

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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.96 and the second target at 0.9650. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9485. A break of this target would push the pair further downwards and one may expect the second target at 0.9455. The pivot point is at 0.9530.

Resistance levels:
0.96
0.9650
0.9685

Support levels:
0.9485
0.9455
0.9415