Fundamental overview:
USD/CHF is expected to trade in a lower range. It is undermined by the weaker dollar sentiment (ICE spot dollar index last 97.31 versus 98.04 early Thursday) on the back of a larger-than-expected fall in the US new home sales (versus forecast -3.5%) by 11.4% in March, more-than-expected 295,000 US jobless claims in a week ended April 18 (versus forecast 290,000), weaker-than-expected April Markit US flash manufacturing PMI at 54.2 (versus forecast 55.7) ,and franc demand on the retreating EUR/CHF cross. But USD/CHF losses are tempered by the negative Swiss interest rates, threat of the Swiss National Bank's CHF-selling intervention, and positions adjustment ahead of the weekend.
Technical comment:
The daily chart is mixed as stochastic is bullish; but the MACD is in bearish mode, bearish-engulfing candlestick pattern was completed on Thursday.
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 0.9640. 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 0.9685 and the second target at 0.0.9720.
Resistance levels:
0.9685
0.9720
0.9760
Support levels:
0.9480
0.9440
0.94
