Fundamental overview:
USD/CHF is expected to trade with bearish bias. It is underpinned by the improved dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But the Swissie sentiment is soothed by the stronger-than-expected Swiss May PMI of 49.4 (versus forecast 48.1). USD/CHF gains are also tempered by the franc demand on the buoyant CHF/JPY cross.
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought 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 0.9250. The pivot point stands at 0.9385. 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 0.9455 and the second target at 0.95.
Resistance levels: 0.9455 0.9500 0.9550
Support levels: 0.9290 0.9250 0.92
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