Fundamental overview:
USD/CHF is expected to trade with bearish bias. It is undermined by weaker dollar sentiment (ICE spot dollar index last 98.78 versus 99.50 early Tuesday) after weaker-than-expected 0.9% on-month increase in U.S. March retail sales (versus forecast +1.1%) and a surprising drop in the US NFIB index of small business optimism to 95.2 in March from 98.0 in February (versus forecast 98.1). But USD/CHF losses are tempered by negative Swiss interest rates and the threat of Swiss National Bank CHF-selling intervention.
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 turning bearish at overbought levels.
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 0.9665. A break of that target will move the pair further downwards to 0.960. The pivot point stands at 0.9810. 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 0.9870 and the second target at 0.9940.
Resistance levels:
0.9870
0.9940
0.9985
Support levels:
0.9665
0.96
0.9565
The material has been provided by InstaForex Company - www.instaforex.com
