Fundamental overview:
USD/CHF is expected to trade in lower range.It is undermined Undermined by the negative dollar sentiment (ICE spot dollar index last 85.22 versus 85.72 early Monday) after Federal Reserve Bank of Chicago President Charles Evans said the "biggest risk" to the economy right now is that the central bank would raise interest rates sooner than it should. That follows his remarks on Saturday that a stronger dollar is a headwind as it will limit the Fed's ability to meet its inflation mandate and will impede growth and franc demand on soft GBP/CHF and CAD/CHF crosses. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy.
Technical comments:
Daily chart is negative-biased as MACD and stochastics is bearish, five-day moving average is falling below 15-day MA.
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 0.9465. A break of this target will move the pair further downwards to 0.9420. The pivot point stands at 0.9555. 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:
0.9465
0.9420
0.94
