Fundamental overview:
USD/CHF is expected to consolidate with risks skewed higher after hitting a two-week low of 0.9490 on Friday. It is supported by the negative Swiss interest rates and threat of the Swiss National Bank CHF-selling intervention. But USD/CHF gains are tempered by franc demand on soft EUR/CHF cross.
Technical comment:
The daily chart is still negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9440. A break of that target will move the pair further downwards to 0.9370. The pivot point stands at 0.9595. 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, long positions are recommended with the first target at 0.9650 and the second target at 0.9710.
Resistance levels:
0.9650
0.9710
0.9765
Support levels:
0.9440
0.9370
0.9335
