Overview:
USD/CHF is consolidating after hitting two-week low of 0.9092 on Monday. The rate is undermined by soft dollar sentiment. But USD/CHF downside is limited by franc sales on weak CHF/JPY cross. Daily chart is mixed as MACD is bullish, but stochastics is falling from overbought.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.909 in view; a breach of this target will move the pair further downwards to 0.906. The pivot point stands at 0.915. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.918 and the second target at 0.92.
Resistance levels:
0.918
0.92
0.9225
Support levels:
0.909
0.906
0.903
