Overview:
USD/CHF is expected to consolidate after hitting three-day high at 0.9007 on Tuesday. It is supported by the positive dollar sentiment and dovish Swiss National Bank's monetary policy stance and franc sales on soft CHF/JPY cross. But CHF sentiment is boosted by the drop in Switzerland's unemployment rate to 3.0% in May from 3.2% in April. USD/CHF upside is also limited by the franc demand on soft EUR/CHF cross. Daily chart is mixed as MACD in bearish mode, but stochastics is neutral.
Trading recommendation:
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 0.9015 and the second target at 0.9035. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8940. A breach of this target will push the pair further downwards and one may expect the second target at 0.8905. The pivot point is at 0.8965.
Resistance levels:
0.9015
0.9035
0.9085
Support levels:
0.8940
0.8905
0.8875