Fundamental overview:
USD/CHF is expected to trade with a bearish tone. It is supported by the positive USD sentiment, negative Swiss interest rates, and threat of Swiss National Bank CHF-selling intervention. But Swissie sentiment is boosted by the stronger-than-expected Switzerland April PMI of 47.9 (versus forecast 47.7). USD/CHF gains are also tempered by the franc demand on soft EUR/CHF cross.
Technical comment:
The daily chart is mixed as MACD is bearish, 5 and 15-day moving averages are falling but stochastics is turning bullish at 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 0.9290. A break of that target will move the pair further downwards to 0.9220. The pivot point stands at 0.9380. 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 0.9420 and the second target at 0.9500.
Resistance levels:
0.9420
0.95
0.9575
Support levels:
0.9290
0.9220
0.9175
