Fundamental overview:
USD/CHF is expected to trade with bearish bias. It is supported by the broadly firmer USD undertone, franc sales on soft CHF/JPY cross and dovish Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross and also weighed by the lower U.S. Treasury yields (10-year at 2.305% versus 2.327% late Thursday) and concerns among some Federal Reserve officials about USD's strength. Fed's Evans said on Saturday that a stronger dollar is a headwind as it will limit the Federal Reserve's ability to meet its inflation mandate and will impede growth.
Technical comments:
Daily chart is mixed as MACD is in bearish mode but stochastics is turning neutral.
Trading recommendations:
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 0.9495. A break of this target will move the pair further downwards to 0.9465. The pivot point stands at 0.9550. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.96 and the second target at 0.9650.
Resistance levels:
0.96
0.9650
0.9685
Support levels:
0.9495
0.9465
0.9420
