Fundamental overview:

USD/CHF is expected to consolidate with bearish bias after hitting a seven-day low of 0.9307 on Tuesday. It is undermined by weaker dollar sentiment (ICE spot dollar index last 95.92 versus 97.42 early Tuesday) after bigger-than-expected 0.4% decrease in US April factory orders (versus forecast -0.1%), a fall in the US ISM-NY Current Business Index to 54.0 in May from 58.1 April, a drop in the US IBD/TIPP Economic Optimism Index to 48.1 in June from 49.7 In May, and a comment from Fed's Brainard that Q1 soft data raised some troubling questions and don't support an immediate liftoff in rates . But USD/CHF losses are tempered by franc sales on buoyant EUR/CHF cross, negative Swiss interest rates, and threat of the Swiss National Bank CHF-selling intervention.

Technical comment:

The daily chart is tilting negative as stochastics falling from overbought levels, positive MACD histogram bars are contracting.

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 0.9290. A break of that target will move the pair further downwards to 0.9250. The pivot point stands at 0.9380. 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 0.9430 and the second target at 0.9480.

Resistance levels: 0.9430 0.9480 0.9500

Support levels: 0.9290 0.9250 0.92