Overview:
USD/CHF is expected to consolidate with bullish bias as markets await European Central Bank interest rate announcement. USD/CHF is supported by the positive USD sentiment, contagion from weak euro on Swiss franc and dovish Swiss National Bank's monetary policy stance. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross. Daily chart is mixed as stochastics is falling from overbought zone, positive MACD histogram bars are contracting, but five-day moving average is meandering sideways above advancing 15-day MA.
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 0.8935. A breach of this target will move the pair further downwards to 0.8920. The pivot point stands at 0.8980. In case the price moves in the opposite direction and bounces back from the 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 0.8995 and the second target at 0.9010.
Resistance levels:
0.8995
0.9010
0.9035
Support levels:
0.8935
0.8920
0.8885
