USD/CHF is expected to trade with bearish bias. It is trading with lower liquidity as the US financial floors are closed for the Easter holiday and market is waiting for Non Farm payroll data due to come out later today. It is underpinned by negative dollar sentiment, negative Swiss interest rates, and threat of Swiss National Bank CHF-selling intervention. But Swiss franc sentiment is boosted by the stronger-than-expected Switzerland March KOF economic barometer of 90.8 (versus forecast 89.1). USD/CHF gains are also tempered by the franc demand on buoyant CHF/JPY cross.
The daily chart is mixed as the MACD bearish, but stochastics is in a bullish mode.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.9550. A break of that target will move the pair further downwards to 0.9525. The pivot point stands at 0.9635. 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 0.9705 and the second target at 0.9765.
Uitgevoerd door, Analytische expert
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