Overview:
USD/CHF is trading in a lower range. It is supported by the improved dollar sentiment. But USD/CHF upside is limited by the franc demand in buoyant CHF/JPY cross and in the soft EUR/CHF cross, positions adjustment before weekend. Daily chart is still negative-biased as MACD is bearish, the stochastics stays suppressed at oversold; although inside-day-range pattern completed Thursday.
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. A short position is recommended with the first target at 0.902 in view; a breach of this target will move the pair further downwards to 0.9. The pivot point stands at 0.909. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.9115 and the second target at 0.9135.
Support levels:
0.902
0.9
0.8975
Resistance levels:
0.9115
0.9135
0.9175
