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

Overview:

USD/CHF is expected to trade with bullish bias.It is supported by the broadly firmer USD undertone and dovish Swiss National Bank's monetary-policy stance. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross and positions adjustment before weekend. Daily chart is positive-biased as MACD is bullish, five-day moving average is above 15-day MA and is advancing, stochastics stays elevated at overbought zone, although inside-day-range pattern was completed on Thursday.  

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 0.8969 and the second target at 0.8985. 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 will push the pair further downwards and one may expect the second target at 0.8860. The pivot point is at 0.8910.

Resistance levels: 
0.8960 
0.8985 
0.9010

Support levels: 
0.8880 
0.8860 
0.8845