USD/CHF is expected to trade in lower range. USD/CHF losses are tempered by the improved dollar sentiment (ICE spot dollar index last 97.07 versus 96.63 early Monday) after the US ISM non-manufacturing March report pointed to a brighter growth outlook, negative Swiss interest rates, threat of the Swiss National Bank CHF-selling intervention, and franc sales on buoyant EUR/CHF cross.
the daily chart is still negative-biased as five and 15-day moving averages are declining. The MACD and stochastics are bearish. Although, the latter is at oversold levels, while the inside-day-range pattern was completed on Monday.
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 0.9525. A break of that target will move the pair further downwards to 0.9470. The pivot point stands at 0.9610. 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 0.9675 and the second target at 0.9750.
Uitgevoerd door, Analytische expert
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