FX.co ★ Technical analysis of USD/CHF for July 22, 2014

Overview:

USD/CHF is expected to trade in a range. It is supported by the broadly firmer USD undertone as well as dovish Swiss National Bank's monetary policy. But USD/CHF upside move is limited by the flows to haven CHF amid escalating geopolitical concerns. The daily chart is mixed as MACD is bullish; a five-day moving average is above a 15-day MA and is advancing. However, stochastics is bearish in the overbought zone. Inside-day-range pattern was completed on Monday.

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 0.9025 and the second target at 0.9050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8935. A break of this target would push the pair further downwards and one may expect the second target at 0.8910. The pivot point is at 0.8965.

Resistance levels:
0.9025
0.9050
0.9075

Support levels:
0.8935
0.8910
0.8895