Overview:
USD/CHF is to trade in a lower range. CHF sentiment has been boosted by higher-than-expected Switzerland April KOF Economic Barometer (it came in at 1.02 VS 0.98 forecast). USD/CHF has also been undermined by a weaker USD sentiment and CHF demand on soft EUR/CHF cross. The daily chart is mixed as MACD is bullish, 5- & 15-day moving averages are rising; but Stochastics are turning bearish at overbought.
Trading recommendation:
The pair is trading below its pivot point. The pair is likely to trade in a lower range as far as it remains below its pivot point. Short positions are recommended with the first target at 0.9355 in view. Breach of this target will move the pair downwards, and you should expect the second target at 0.9325. The pivot point stands at 0.944. In case the price moves in the opposite direction and returns from its support and moves above its pivot point, then trading in a higher range is the most favorable and buy positions are recommended above its pivot with the first target at 0.9455 and the second target at 0.9498.
Support levels:
S1 - 0.9355
S2 - 0.9325 (Tuesday's low)
S3 - 0.93
Resistance levels:
R1 - 0.9455 (Friday's high)
R2 - 0.9498 (Wednesday's high)
R3 - 0.9526 (April 4 high)