Overview:
USD/CHF is trading in lower range. The rate is undermined by weaker dollar sentiment; franc demand on soft EUR/CHF cross; profit-taking on CHF-shorts ahead of Fed Chairman Bernanke's testimony before Congress on Wednesday. Daily chart is mixed as MACD is bullish; but stochastics has turned bearish at overbought, inside-day-range pattern was completed on Monday.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9334 in view, breach of this target will move further the pair downward and you should expect the second target at 0.9309. Pivot point stands at 0.942. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.9436 and the second target at 0.9455.
Support Levels:
S1 - 0.9644 (Monday's low)
S2 - 0.9576 (Thursday's low)
S3 - 0.9517 (May 14 low)
Resistance Levels:
R1 - 0.9761 (Friday's nine-month high)
R2 - 0.9809 (Aug. 10, 2012 high)
R3 - 0.9898 (Aug. 2, 2012 high)
