Overview:
USD/CHF is trading with bearish bias. The rate is undermined by franc demand on soft EUR/CHF cross. But USD/CHF losses tempered by positive dollar sentiment. Data focus: 07:30 GMT Switzerland May PMI. Daily chart is negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and falling.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.951 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9465. Pivot point stands at 0.96. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.966 and the second target at 0.9705.
Resistance levels:
R1 - 0.966
R2 - 0.9705
R3 - 0.9755
Support levels:
S1 - 0.951
S2 - 0.9465
S3 - 0.9425
