USD/CHF is expected to trade in a lower range. It is undermined by the broadly weaker dollar undertone (ICE spot dollar index last 95.26 versus 96.40 early Monday) after news reports cited US President Barack Obama as saying the strong dollar was a problem triggered liquidation of long USD positions, although the White House and Mr. Obama himself denied the report. But USD/CHF losses are tempered by the negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
Technical comment: The daily chart is negative-biased as stochastics is bearish, the MACD histogram bars are turning negative.
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 0.9245. A break of that target will move the pair further downwards to 0.9210. The pivot point stands at 0.9360. 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 0.9420 and the second target at 0.9475.
Resistance levels: 0.9420 0.9475 0.9525
Support levels: 0.9245 0.9210 0.9195
The material has been provided by InstaForex Company – www.instaforex.com