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Technical analysis of USD/CHF for March 21, 2014

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Overview:The USD/CHF is expected to consolidate with bullish bias after hitting two-week high at 0.8869 on Thursday. The USD/CHF has been supported by the Swiss National Bank on Thursday repeating its pledge to intervene in currency markets to prevent the Swiss franc from strengthening beyond 1.20 per euro, and keeping its target range for the three-month Swiss franc London interbank offered rate unchanged at 0% to 0.25%. However, it lowered its inflation forecasts – it now expects prices to be unchanged this year, compared with its previous projection of a 0.2% gain, and to pick up to 0.4% in 2015, compared with 0.6% previously. The USD/CHF is also underpinned by positive dollar sentiment. But the USD/CHF gains are tempered by the positions’ adjustment before the weekend. The daily chart is positive-biased as the MACD and stochastics is in bullish mode.

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 0.8890 and the second target at 0.8915. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8770. A breach of this target will push the pair further downwards and one may expect the second target at 0.8755. The pivot point is at 0.8795.

Resistance levels: 0.8890 0.8915 0.8945

Support levels: 0.8770 0.8755 0.8715

The material has been provided by InstaForex Company – www.instaforex.com
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