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FX.co ★ Technical analysis of USD/CHF for April 23, 2014

Technical analysis of USD/CHF for April 23, 2014

Technical analysis of USD/CHF for April 23, 2014

Overview:

USD/CHF is expected to consolidate with bearish bias after hitting two-week high at 0.8861 on Tuesday. It is underpinned by the dovish Swiss National Bank's monetary policy stance and franc sales on buoyant EUR/CHF cross. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day MA and is advancing.

Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8775. A breach of this target will move the pair further downwards to 0.875. The pivot point stands at 0.8845. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8860 and the second target at 0.8880.

Resistance levels:
0.8860
0.8880
0.889

Support levels:
0.8775
0.875
0.8725

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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