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Technical analysis of USD/CHF for June 19, 2015


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USD/CHF is expected to consolidate after hitting the month low of 0.9145 on Thursday. On Thursday, the Swiss National Bank maintained its deposit rate at -0.75% and reiterated it was prepared to take further measures to blunt the strength of the Swiss franc, which it said remains "significantly" overvalued. USD/CHF is supported by the improved USD sentiment, negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention. But USD/CHF upside is limited by the positions adjustment ahead of the weekend.

Technical comment:

The daily chart is still negative-biased as the MACD and stochastics are bearish, although latter is at oversold levels. Five and 15-day moving averages are declining.

Trading recommendations:

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 0.9250 and the second target at 0.93. In the alternative scenario, short positions are recommended with the first target at 0.9145 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9105. The pivot point is at 0.9185.

Resistance levels: 0.9250 0.93 0.9360

Support levels: 0.9145 0.9105 0.9065

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