USD/CHF rising from pivot

FXstreet.com (London) - USD/CHF is recovering some ground today, having tumbled earlier on in the week, it now trades above the pivot along an ascending path on the hourly chart.

USD/CHF set up for a bounce

Stephen Gallo at BMO said that they expect the SNB to strike a more dovish tone at next week’s assessment of monetary policy, leaving market participants with the right incentives to consider progressive CHF sales as a viable opportunity for profit under current circumstances. On the basis of recent weekly changes in USD/CHF, he said the pair appears ripe for a nice bounce. With USD/CHF sitting near firm trendline support (roughly 0.9140) from the October 2011 low, he thinks that Bernanke and the FOMC opting to maintain a rough market consensus for a September tapering will make USD/CHF an excellent buying opportunity from the aforementioned support area, should the SNB choose to go “dovish” next Thursday. MA’s in the short term are offering a bullish signal while in the longer term, the pair remain offered and ma’s indicate further to go with a neutral stance on the weekly charts.