Overview:
USD/CHF is expected to trade in a higher range. The CHF sentiment is dented by the 0.5% year-on-year drop in Switzerland June PPI and 1.5% year-on-year drop in June import price index. USD/CHF is also supported by the positive dollar sentiment, dovish Swiss National Bank's monetary policy and franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross. The daily chart is positive-biased as stochastics is in bullish mode, MACD is turning bullish, five-day moving average is above 15-day MA and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8910 and the second target at 0.8895. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9. A break of this target would push the pair further downwards and one may expect the second target at 0.9015. The pivot point is at 0.8950.
Resistance levels:
0.9
0.9015
0.9035
Support levels:
0.8910
0.8895
0.8865
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