Fundamental overview:
USD/CHF is expected to consolidate in a lower range as markets await 0830 GMT Swiss National Bank interest rate decision, SNB is expected to leave its monetary policy unchanged. USD/CHF is undermined by broadly weaker USD undertone (ICE spot dollar index last 88.23 versus 88.67 early Wednesday). But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross.
Technical comment:
Daily chart is tilting negative as stochastics falling from overbought levels, MACD is turning bearish.
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 positions are recommended with the first target at 0.9302. A break of this target will move the pair further downwards to 0.9590. The pivot point stands at 0.9720. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 0.9755 and the second target at 0.9790.
Resistance levels:
0.9755
0.9790
0.9835
Support levels:
0.9615
0.9590
0.9545
