01.05.201417:48 Forex Analysis & Reviews: Technical analysis of USD/CHF for May 01, 2014

Long-term review

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Overview:

USD/CHF is expected to trade in lower range. As financial markets in Switzerland were shut today for holiday. USD/CHF is undermined by the negative dollar sentiment. But CHF sentiment are dented by the surprise drop in Switzerland KOF economic barometer to 102.0 in April (versus forecast for rise to 107.2) from an upwardly revised 106.3 in March (originally reported at 106.1). USD/CHF losses also tempered by the dovish Swiss National Bank's monetary policy stance and franc sales on buoyant EUR/CHF cross. Daily chart is negative-biased as MACD and stochastics are turning bearish.

Trading recommendation:
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 0.8765. A breach of this target will move the pair further downwards to 0.8730. The pivot point stands at 0.8810. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8825 and the second target at 0.8845.

Resistance levels:
08825
0.8845
0.8860

Support levels:
0.8765
0.8730
0.87

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