Fundamental overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 95.29 versus 94.12 early Tuesday) after stronger-than-expected 20.2% increase in U.S. April housing starts (versus forecast +10.2%) and 10.1% increase in US April building permits (versus forecast +1.7%), negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment:
The daily chart is positive-biased as stochastics is rising from oversold levels. The MACD staged bullish crossover against its exponential moving average. Bullish parabolic stop-and-reverse signal was hit on Tuesday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9410 and the second target at 0.9450. In the alternative scenario, short positions are recommended with the first target at 0.9260 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9215. The pivot point is at 0.9300.
Resistance levels:
0.9410
0.9450
0.95
Support levels:
0.9260
0.9215
0.9175
