USD/CHF is expected to trade in a higher range. It is underpinned by the bullish dollar sentiment (ICE spot dollar index last 94.32 versus 94.06 early Monday) after the strongest increase in nearly six years of 5.1% in the US May existing home sales (versus forecast +4.2%), the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention.
The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling but stochastics are turning bullish at oversold levels.
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 0.9380 and the second target at 0.9420. In the alternative scenario, short positions are recommended with the first target at 0.9205 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 0.9155. The pivot point is at 0.9250.
Resistance levels: 0.9380 0.9420 0.9460
Support levels: 0.9205 0.9155 0.9115
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