FX.co ★ Technical analysis of USD/CHF for January 02, 2014

Overview:

USD/CHF is expected to trade with bullish bias undermined by franc demand on CHF/JPY amid weak yen sentiment. But USD/CHF downside movement is limited by franc sales on buoyant EUR/CHF. Daily chart is mixed as MACD and stochastics are in bullish mode, but five-day moving average is meandering sideways.

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 0.904 and the second target at 0.907 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.89.The breach of this target will move the pair further downwards and one may expect the second target at 0.888. The pivot point stands at 0.893.

Resistance levels:
0.904
0.907
0.91

Support levels:
0.89
0.888
0.885