Fundamental overview:
USD/CHF is expected to consolidate with bearish bias after hitting a four-year high 1.0240 on Wednesday. It is supported by the contagion from the weak euro on the Swiss franc and franc sales on soft CHF/JPY cross and ultra-loose Swiss National Bank's monetary policy. But USD/CHF gains are tempered by the weaker dollar sentiment.
Technical comment:
The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels, five- and 15-day moving averages are advancing.
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 the pivot point. Short positions are recommended with the first target at 0.8405. A break of this target will move the pair further downward to 0.8005. The pivot point stands at 0.9550. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.9780 and the second target at 1.
Resistance levels:
0.9780
0.9810
0.9845
Support levels:
0.8405
0.8005
0.7975
