Overview:
USD/CHF is consolidating with bearish bias after hitting a seven-week low of 0.9172 Thursday. it is undermined by broadly weaker dollar undertone. But CHF sentiment is dented by rise in Switzerland unemployment rate to 3.0% in July from 2.9% in June. USD/CHF losses are also tempered by the franc sales on buoyant EUR/CHF cross; positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish, although latter is oversold; the 5- and 15-day moving averages are declining.
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 positions are recommended with the first target at 0.918 in view; a breach of this target will move the pair downward further and you should expect the second target at 0.913. The pivot point stands at 0.924. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in a higher range is the most favorable and buying positions above its pivot with the first target at 0.926 and the second target at 0.93 is recommended.
Support levels:
S1 - 0.918
S2 - 0.913
S3 - 0.91
Resistance levels:
R1 - 0.926
R2 - 0.93
R3 - 0.934
