Fundamental overview:
USD/CHF is expected to consolidate with a bearish bias after hitting a two-and-a-half month low 0.9307 on Thursday. It is undermined by the franc demand on cross trades versus major currencies. But the Swissie sentiment is dented by the weaker-than-expected Switzerland April KOF economic barometer of 89.5 (versus forecast 90.2). USD/CHF losses are also tempered by the improved dollar sentiment, negative Swiss interest rates, and threat of Swiss National Bank CHF-selling intervention as well as positions adjustment ahead of the weekend.
Technical comment:
The daily chart is negative-biased as MACD and stochastics are bearish, although the latter is at oversold levels, five-day moving average is below 15-day moving average and is declining.
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 0.9290. A break of that target will move the pair further downwards to 0.9220. The pivot point stands at 0.9420. 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 0.9500 and the second target at 0.9575.
Resistance levels:
0.95
0.9575
0.9620
Support levels:
0.9290
0.9220
0.9175
