USD/CHF is expected to consolidate with a bearish bias as markets are awaiting Fed’s interest rate decision. The Fed is expected to announce the end of its monthly bond-buying program. Market participants will be closely watching the outlook for short-term interest rates which are expected to be raised in the second half of 2015. USD/CHF is undermined by the franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the dovish Swiss National Bank’s monetary policy.
Daily chart is tilting negative as MACD is in a bearish mode, stochastics is turning bearish.
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 position is recommended with the first target at 0.9435. A break of this target will move the pair further downwards to 0.9395. The pivot point stands at 0.9515. In case the price moves in the opposite direction and bounces back from the support level, then it will moves 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 0.9560 and the second target at 0.9590.
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