Fundamental overview:
USD/CHF is expected to trade in a higher range. It is underpinned by the franc sales on cross trades versus major currencies, the negative Swiss interest rates and the threat of the SNB's CHF-selling intervention. But USD/CHF gains are tempered by the softer USD sentiment (ICE spot dollar index last 94.97 versus 95.32 early Monday) as the Dallas Fed business activity index fell to -4.4 in January from +3.5 in December, and by the caution ahead of the Federal Reserve's monetary decision on Wednesday.
Technical comment:
The daily chart is mixed as the MACD is in bearish mode, but stochastics is neutral.
Trading recommendations:
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 0.9125 and the second target at 0.92. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8840. A break of this target would push the pair further downwards, and one may expect the second target at 0.8750. The pivot point is at 0.8905.
Resistance levels:
0.9125
0.92
0.9250
Support levels:
0.8840
0.8750
0.87