Overview:
USD/CHF is consolidating with bearish bias after hitting near-one-month low of 0.9393 Wednesday. The rate is undermined by negative dollar sentiment; franc demand on soft EUR/CHF cross. But USD/CHF downside is limited by caution ahead of U.S. May non-farm payrolls report Friday. Data focus: 07:15 GMT Switzerland May CPI. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed 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 0.939 in view, breach of this target will move further the pair downward and you should expect the second target at 0.936. Pivot point stands at 0.945. 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 0.9475 and the second target at 0.9515.
Resistance Levels:
R1 - 0.9475
R2 - 0.9515
R3 - 0.9545
Support Levels:
S1 - 0.939
S2 - 0.936
S3 - 0.93
