16.07.201418:27 Forex Analysis & Reviews: Technical analysis of USD/CHF for July 16, 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. The CHF sentiment is dented by the 0.5% year-on-year drop in Switzerland June PPI and 1.5% year-on-year drop in June import price index. USD/CHF is also supported by the positive dollar sentiment, dovish Swiss National Bank's monetary policy and franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross. The daily chart is positive-biased as stochastics is in bullish mode, MACD is turning bullish, five-day moving average is above 15-day MA and is advancing.

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 far as the price is above its pivot point, a long position is recommended with the first target at 0.8910 and the second target at 0.8895. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9. A break of this target would push the pair further downwards and one may expect the second target at 0.9015. The pivot point is at 0.8950.

Resistance levels:
0.9
0.9015
0.9035

Support levels:
0.8910
0.8895
0.8865

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.