Overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the positive dollar sentiment, dovish Swiss National Bank's monetary policy, and franc sales on rebounding EUR/CHF cross. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. The daily chart is still negative-biased as MACD and stochastics is in a bearish mode, five-day moving average is below 15-day MA and is declining, although inside-day-range pattern was completed on Monday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9095 and the second target at 0.9115. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9015. A break of this target would push the pair further downwards and one may expect the second target at 0.8990. The pivot point is at 0.90500.
Resistance levels:
0.9095
0.9115
0.9135
Support levels:
0.9015
0.8990
0.8975
