Fundamental overview:
USD/CHF is expected to trade in a range. It is supported by the negative Swiss interest rates and threat of SNB CHF selling intervention. But USD/CHF upside move is limited by the broadly weaker dollar undertone (ICE spot dollar index last 94.51 versus 94.70 early Monday) on profit-taking of long USD positions.
Technical comment:
The daily chart is still positive-biased as MACD and stochastics are in a bullish mode.
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 0.9160. A break of this target will move the pair further downward to 0.9075. The pivot point stands at 0.9290. 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 0.9365 and the second target at 0.9435.
Resistance levels:
0.9365
0.9435
0.9465
Support levels:
0.9160
0.9075
0.8985
