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Technical analysis of USD/CHF for June 08, 2015


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USD/CHF is expected to consolidate with a bearish bias. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 96.40 versus 95.69 early Friday) after bigger-than-expected 280,000 increase in U.S. May nonfarm payrolls (versus forecast 225,000), more-than-expected 0.3% on-month rise in U.S. May average hourly earnings (versus forecast 0.2%), although U.S. May unemployment rate came in higher-than-expected at 5.5% (versus forecast 5.4%), negative Swiss interest rates as well as threat of Swiss National Bank CHF-selling intervention. But USD/CHF upside move is limited by the franc demand on soft EUR/CHF cross.

Technical comment: The daily chart is mixed as stochastics is in bearish, but MACD is in a bullish mode.

Trading recommendations:

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 0.93. A break of that target will move the pair further downwards to 0.9275. The pivot point stands at 0.9395. 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 0.9430 and the second target at 0.9480.

Resistance levels: 0.9430 0.9480 0.9525

Support levels: 0.93 0.9250 0.9195

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