Overview:
USD/CHF is expected to consolidate with bearish bias after hitting four-day low at 0.8823 on Tuesday. CHF sentiment is boosted by the drop in Switzerland March unemployment rate to 3.3% in March from 3.5% in February. USD/CHF is also undermined by the broadly weaker dollar undertone and franc demand on soft EUR/CHF cross. But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross amid positive yen sentiment and dovish Swiss National Bank's monetary policy stance. Daily chart is mixed as MACD is bullish, but stochastics is falling from overbought zone.
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. Short position is recommended with the first target at 0.8790. A breach of this target will move the pair further downwards to 0.8760. The pivot point stands at 0.8845. In case the price moves in the opposite direction and bounces back from support level, and then it moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8870 and the second target at 0.8890.
Resistance levels:
0.8870
0.8890
0.8910
Support levels:
0.8790
0.8760
0.8730
