USD/CHF is expected to consolidate in a lower range. It is undermined by the franc demand on the soft EUR/CHF cross and higher-than-expected Switzerland June CPI of +0.1% on-month, -1.0% on-year (versus forecast -0.1% on-month, -1.2% on-year). But USD/CHF losses are tempered by the threat of the Swiss National Bank to carry out CHF-selling intervention and the negative Swiss interest rates.
Technical comment:
The daily chart is mixed as the MACD is bullish, five-day moving average is above 15-day moving average and is advancing, but stochastics is bearish at overbought levels.
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 0.9515 and the second target at 0.9540. In the alternative scenario, short positions are recommended with the first target at 0.9390 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 0.9360. The pivot point is at 0.9430.
Resistance levels: 0.9515 0.9540 0.96
Support levels: 0.9390 0.9360 0.9315
