USD/CHF is expected to trade in a range. It is undermined by the broadly weaker dollar undertone (ICE spot dollar index last 94.56 versus 95.08 early Tuesday) amid lower US Treasury yields (10-year at 2.247% versus 2.272% late Monday) and higher oil prices (Nymex crude settled up $1.50 at $60.75/bbl Tuesday); fewer-than-expected 4.99 million US March job openings (versus forecast 5.1 million). But USD/CHF downside is limited by the negative Swiss interest rates and threat of Swiss National Bank CHF-selling intervention.
The daily chart is mixed as the MACD is bearish, but stochastics is rising from the 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 0.9360 and the second target at 0.9415 . 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 0.9135. The pivot point is at 0.9225.
The material has been provided by InstaForex Company – www.instaforex.com