Fundamental overview:
USD/CHF is expected to consolidate with a bearish bias after hitting a three-month low 0.9111 on Wednesday. It is undermined by the negative USD sentiment (ICE spot dollar index last 94.14 versus 95.10 early Wednesday) after fewer-than-expected 169,000 increase in ADP U.S. April private sector jobs (versus forecast +205,000), bigger-than-expected 1.9% drop in U.S. 1Q preliminary productivity (versus forecast -1.8%), and franc demand on cross trades versus major currencies. But USD/CHF losses are tempered by the negative Swiss interest rates and threat of Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold levels, 5 and 15-day moving averages are falling.
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 0.9110. A break of that target will move the pair further downwards to 0.9050. The pivot point stands at 0.9225. 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 0.9280 and the second target at 0.9340.
Resistance levels:
0.9280
0.9340
0.9375
Support levels:
0.9110
0.9050
0.9
