Overview:
USD/CHF is consolidating with bearish bias after hitting near one-month low of 0.9408 on Monday. The rate is undermined by negative dollar sentiment; franc demand on soft EUR/CHF cross; stronger-than-expected rise in Switzerland PMI to 52.2 in May (vs 50.6 forecast) from 50.2 in April. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold; 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 0.945 in view, breach of this target will move further the pair downward and you should expect the second target at 0.94. Pivot point stands at 0.9535. 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 0.9585 and the second target at 0.9625.
Support levels:
S1 - 0.945
S2 - 0.94
S3 - 0.9375
Resistance levels:
R1 - 0.9585
R2 - 0.9625
R3 - 0.9675
