USD/CHF is expected to consolidate with bearish bias after hitting the month low of 0.9194 on Wednesday amid the Swiss National Bank monetary policy decision. The SNB is likely to keep its deposit rate on hold. The regulator also reiterated that the franc remains overvalued and that the bank is ready to intervene. USD/CHF is weighed by the negative dollar sentiment and franc demand on the buoyant CHF/JPY cross and on the soft EUR/CHF cross. But USD/CHF losses are tempered by the negative Swiss interest rates and the threat of the Swiss National Bank to cary out CHF-selling intervention.
The daily chart is negative-biased as the MACD is bearish, stochastics is reverting to bearish mode at oversold levels. Five- and 15-day moving averages are declining.
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 0.9145. A break of that target will move the pair further downwards to 0.9105. The pivot point stands at 0.9230. 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 0.9265 and the second target at 0.93.
Resistance levels: 0.9265 0.93 0.9360
Support levels: 0.9145 0.9105 0.9065