Overview:
USD/CHF is expected to trade in a range. It is supported by the broadly firmer dollar undertone and dovish Swiss National Bank's monetary policy. But CHF sentiment is boosted by the rise in Switzerland ZEW-Credit Suisse economic sentiment index to 2.5 points in August from 0.1 point in July. USD/CHF upside is also limited by the franc demand on buoyant CHF/JPY cross and on soft EUR/CHF cross. The daily chart is mixed as MACD is in a bearish mode but stochastics is neutral, five-day moving average is fluctuating sideways above advancing 15-day MA.
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 its pivot point. Short position is recommended with the first target at 0.9030. A break of this target will move the pair further downwards to 0.9. The pivot point stands at 0.9085. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9110 and the second target at 0.9135.
Resistance levels:
0.9110
0.9135
0.9155
Support levels:
0.9030
0.900
0.8975
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