USD/CHF is going to trade in a higher range. The Swissie sentiment is dented by the weaker-than-expected Switzerland June KOF economic barometer of 89.7 (versus forecast 93.5). USD/CHF is also supported by the positive dollar sentiment (ICE spot dollar index last 95.60 versus 94.99 early Tuesday) after stronger-than-expected US June Conference Board consumer confidence index of 101.4 (versus forecast 97.4), the threat of the Swiss National Bank to carry out CHF-selling intervention, and the negative Swiss interest rates.
Technical comment:
The daily chart mixed as the MACD bullish, but stochastics neutral.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9455 and the second target at 0.9485. In the alternative scenario, short positions are recommended with the first target at 0.9330 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9285. The pivot point is at 0.9375.
Resistance levels: 0.9455 0.9485 0.9535
Support levels: 0.9330 0.9285 0.9215
