Fundamental overview:
USD/CHF is expected to range-trade. It is undermined by the negative dollar sentiment (ICE spot dollar index last 96.10 versus 96.85 early Tuesday) on a surprise drop in the U.S. Conference Board consumer confidence index to 95.2 in April from 101.4 in March (versus forecast for rise to 102.5). But USD/CHF downside is limited by the franc sales on the buoyant EUR/CHF cross, the negative Swiss interest rates and the threat of the Swiss National Bank to carry out CHF-selling intervention. The daily chart is mixed as the MACD and stochastics are in bearish mode, but five and 15-day moving averages are meandering sideways.
Technical comment:
The daily chart still is negative-biased as the MACD and stochastics are in bearish mode.
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 0.9480. A break of that target will move the pair further downwards to 0.9440. The pivot point stands at 0.9620. 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 0.9670 and the second target at 0.9720.
Resistance levels:
0.9670
0.9720
0.9760
Support levels:
0.9480
0.9440
0.94
