USD/CHF is expected to trade in a lower range. It is undermined by the weaker dollar sentiment (ICE spot dollar index last 94.99 versus 96.20 early Monday) as market participants pushed back the expectations for the US Federal Reserve to increase its interest rates this year in view of latest developments in the Greek debt crisis. The pair is also undermined by smaller-than-expected 0.9% increase in the US pending home sales index to 112.6 in May (versus forecast +1.2%), lower US Treasury yields (10-year fell 14.8 bps to 2.327% Monday), flows to thesafe-haven Swiss franc as Greece crisis roils financial markets. But USD/CHF losses are tempered by the intervention from the Swiss National Bank to curb flight-to-safety buying of the Swissie, and the negative Swiss interest rates.

Technical comment:

The daily chart is mixed as the MACD is bullish, but stochastics is turning bearish.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9240. A break of that target will move the pair further downwards to 0.9205. The pivot point stands at 0.9330. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9370 and the second target at 0.9415.

Resistance levels: 0.9370 0.9415 0.9450

Support levels: 0.9240 0.9205 0.9175