USD/CHF: Range trade
USD/CHF is in range trade. The rate is undermined by broadly weaker demand for safe-haven USD as investor risk aversion decreases. Fed’s Yellen said the U.S. central bank should press on with $ 85 billion in monthly bond buying as the balance of risks still called for a highly accommodative monetary policy to support a stronger recovery and more rapid growth in employment. Risk sentiment boosted after U.S. February ISM-NY Current Business Conditions Index increased to 58.8 in February, its highest since March 2012, from 56.7 in January.
Buy above pivot point at 0.9375 with first targets at 0.944 and second target at 0.947
R1 – 0.9441 (Monday’s high)
R2 – 0.9462 (Friday’s three-and-a-half month high)
R3 – 0.9515 (Nov. 13 reaction high) and 0.9608 (Sept. 5 high).
Sell below 0.9375 and look for first target at 0.935 and breach of would will target 0.9315.
S1 – 0.9352 (Friday’s low)
S2 – 0.9315
S3 – 0.9280 (Thursday’s low)
Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are rising; although inside-day-range pattern was completed on Monday.
The material has been provided by InstaForex Company – www.instaforex.com