Fundamental overview:
USD/CHF is expected to trade with risks skewed lower. It is undermined by the weaker dollar sentiment. But USD/CHF losses are tempered by the franc sales on buoyant EUR/CHF crosses, negative interest rates, and the threat of CHF-selling intervention by Swiss National Bank. "The Swiss franc is significantly overvalued overall," Swiss National Bank President Thomas Jordan said Friday. The SNB will monitor exchange rates and intervene in the market to influence monetary conditions, Mr. Jordan said.
Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastic is getting bearish mode near oversold 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 0.9480. A break of that target will move the pair further downwards to 0.9440. The pivot point stands at 0.9620. 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 0.9670 and the second target at 0.9720.
Resistance levels:
0.9670
0.9720
0.9760
Support levels:
0.9480
0.9440
0.94
