Overview:
USD/CHF is trading with risks skewed lower. The rate is undermined by franc demand on soft GBP/CHF, AUD/CHF, NZD/CHF and CAD/CHF crosses. But USD/CHF losses are tempered by positive dollar sentiment. Daily chart is mixed as MACD is bullish, but stochastics is turning bearish at overbought.
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 0.914 in view; a breach of this target will move the pair further downwards to 0.911. The pivot point stands at 0.9205. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, 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 0.9225 and the second target at 0.9245.
Resistance levels:
0.9225
0.9245
0.928
Support levels:
0.914
0.911
0.908
