FX.co ★ USD/CHF under pressure

Overview:
USD/CHF is to consolidate with bearish bias after hitting seven-day low of 0.9276 Tuesday as markets await U.S. FOMC interest rate decision. USD/CHF has been undermined by negative USD sentiment and CHF demand on soft EUR/CHF cross. The daily chart is negative-biased as stochastics are falling from overbought; MACD is staging bearish crossover against its exponential moving average; bearish parabolic stop-and-reverse signal hit at 0.9279 Tuesday.

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 0.9235 in view, breach of this target will move the pair further downwards and you should expect the second target at 0.9204. The pivot point stands at 0.932. 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 favourable and buy positions are recommended above its pivot with the first target at 0.934 and the second target at 0.9384.

Support levels:
S1 - 0.9235
S2 - 0.9204 (April 16 reaction low)
S3 - 0.9182 (Feb. 20 low) and 0.9146 (Feb. 12 low)

Resistance levels:
R1 - 0.934
R2 - 0.9384 (Tuesday's high)
R3 - 0.9429 (Monday's high)