Fundamental overview:
USD/CHF is expected to consolidate with bearish bias after hitting a near-three-month low of 0.9233 on Tuesday. Undermined by weaker USD sentiment (ICE spot dollar index last 95.10 versus 95.44 early Tuesday) after wider-than-expected US March trade deficit of $51.37 billion (versus forecast $42.5 billion) and franc demand on soft EUR/CHF cross. But USD/CHF losses are tempered by negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is negative-biased as the 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 0.9190. A break of that target will move the pair further downwards to 0.9135. The pivot point stands at 0.9295. 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 0.9360 and the second target at 0.9415.
Resistance levels:
0.9360
0.9415
0.9450
Support levels:
0.9190
0.9135
0.9065
