USD/CHF is expected to trade with bearish bias. It is underpinned by the improved USD sentiment, the franc sales on soft CHF/JPY cross and ultra-loose Swiss National Bank’s monetary policy. But USD/CHF gains are tempered by the franc demand on soft GBP/CHF, AUD/CHF, NZD/CHF and CAD/CHF crosses.
The daily chart is still negative-biased as the MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.
The pair is trading below its pivot point. It 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 0.9565. A break of this target will move the pair further downwards to 0.9540. The pivot point stands at 0.9640. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9685 and the second target at 0.9720.
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