20.02.201418:06 Forex Analysis & Reviews: Technical analysis of USD/CHF for Feburary 20, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Overview:

USD/CHF is expected to trade in a higher range after hittingits near eight-week low at 0.8854 on Wednesday. It is underpinned by the positive dollar sentiment, drop in Switzerland's ZEW-Credit Suisse indicator of economic sentiment to 28.7 in February from 36.4 in January and franc sales on soft CHF/JPY cross. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. Daily chart is mixed as MACD is bearish, five and 15 day moving averages are declining, but stochastics is turning bullish at oversold zone.

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 0.883. A breach of this target will move the pair further downwards to 0.8795. The pivot point stands at 0.8855. In case the price moves in the opposite direction, bounces back from support level, and then 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 0.883 and the second target at 0.8795.

Resistance levels:
0.891
0.893
0.865

Support levels:
0.883
0.8795
0.875

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.