09.06.201408:53 Forex Analysis & Reviews: Technical analysis of USD/CHF for June 09, 2014

Long-term review

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Overview:

USD/CHF is expected to trade in higher range. Financial markets in Switzerland are shut on Monday for public holiday. USD/CHF is supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy stance. But USD/CHF gains are tempered by the higher-than-expected Switzerland May CPI of +0.2% on year (versus +0.1% forecast); franc demand on soft EUR/CHF cross and on the buoyant CHF/JPY cross. Daily chart is still negative-biased as MACD and stochastics are in bearish mode. Five-day moving average is falling below 15-day MA.

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 0.8980. A breach of this target will move the pair further downwards to 0.8995. The pivot point stands at 0.8945. In case the price moves in the opposite direction and bounces back from the support level, and then it 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 0.8980 and the second target at 0.8995.

Resistance levels:
0.8980
0.8995
0.9025

Support levels:
0.8905
0.8875
0.8835

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