FX.co ★ Technical analysis of USD/CHF for August 1, 2014

Overview:

USD/CHF is expected to trade in a lower rande. Financial markets in Switzerland were shut today for the bank holiday. USD/CHF is supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy. But USD/CHF upside is limited by the flows to haven CHF amid increasing risk aversion, franc demand on soft EUR/CHF cross and positions adjustment before the weekend. The daily chart is still positive-biased as MACD is bullish, stochastics stays elevated in the overbought zone, five and 15-day moving averages are advancing, although inside-day-range pattern was completed on Thursday.

Trading recommendations:

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 0.9025. A break of this target will move the pair further downwards to 0.9. The pivot point stands at 0.9095. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.9110 and the second target at 0.9130.

Resistance levels:
0.9110
0.9130
0.9155

Support levels:
0.9025
0.9
0.8975