USD/CHF is expected to trade in a higher range. Swissie sentiment is dented by the surprise 0.2% on a month drop in Switzerland April CPI (versus forecast +0.1% on-month). USD/CHF is also supported by the franc sales on cross trades versus the major currencies, negative Swiss interest rates, and the threat of the Swiss National Bank CHF-selling intervention. But USD/CHF gains are tempered by softer dollar sentiment.
The daily chart is mixed as the MACD is bearish, but stochastics is rising from 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 0.9415 and the second target at 0.9450. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9190. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9132. The pivot point is at 0.9255.
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