FX.co ★ Technical analysis of USD/CHF for Feburary 04, 2014

Overview:

USD/CHF is expected to consolidate. It is undermined by the negative dollar sentiment, flows to the Swiss franc amid elevated risk aversion, stronger-than-expected Switzerland January PMI (came in at 56.1 versus expecrtations for 55.4), and franc demand on weak EUR/CHF cross. But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross. Daily chart is mixed as stochastics is turning neutral, MACD is still in bearish mode, it is bearish outside-day-range pattern which was completed on Monday.

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 0.908 and the second target at 0.91. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.898. A breach of this target will push the pair further downwards and one may expect the second target at 0.8955. The pivot point is at 0.9015.

Resistance levels:
0.908
0.91
0.912

Support levels:
0.898
0.8955
0.8925