USD/CHF is expected to trade with risks skewed lower. It is undermined by the soft dollar sentiment. But the USD/CHF losses are tempered by the franc sales on buoyant AUD/CHF, NZD/CHF, CAD/CHF crosses, the negative Swiss interest rates and the threat of the Swiss National Bank CHF-selling intervention.
The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels, five- and 15-day moving averages are advancing.
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9580 and the second target at 0.958605. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9405. A break of this target would push the pair further downwards, and one may expect the second target at 0.9365. The pivot point is at 0.9445.
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