USD/CHF is expected to trade with bullish bias. It is underpinned by the broadly firmer dollar undertone, threat of the Swiss National Bank to carry out CHF-selling intervention, and the negative Swiss interest rates. But USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross.
The daily chart is mixed as the MACD is bullish, five-day moving average is above 15-day moving average and is advancing but stochastics is turning bearish at overbought levels.
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 0.9360. A break of that target will move the pair further downwards to 0.9330. The pivot point stands at 0.9450. 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 mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 0.95 and the second target at 0.9540.
Resistance levels: 0.95 0.9540 0.96
Support levels: 0.9360 0.9330 0.9285
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