Overview:
USD/CHF is expected to trade in a lower range after hitting seven-day high at 0.9013 on Monday. It is undermined by the broadly weaker USD undertone and spillover strength from rebounding EUR on CHF. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy stance. Daily chart is mixed as MACD and stochastics are turning bearish, but five- and 15-day moving averages are still advancing.
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 0.8955. A breach of this target will move the pair further downwards to 0.8940. The pivot point stands at 0.9015. 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 0.9035 and the second target at 0.9060.
Resistance levels:
0.9035
0.9060
0.9085
Support levels:
0.8955
0.8940
0.89
