Overview:
USD/CHF is trading in lower range. The rate is undermined by soft dollar sentiment; franc demand on CHF/JPY cross amid weak yen sentiment. Data focus: 10:00 GMT Switzerland November ZEW-Credit Suisse indicator of economic sentiment. Daily chart is negative-biased as stochastics is falling from overbought; positive MACD histogram bars are contracting; five-day moving average is staging bearish crossover against 15-day MA.
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 0.909 in view; a breach of this target will move the pair further downwards to 0.906. The pivot point stands at 0.915. 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 0.918 and the second target at 0.92.
Resistance levels:
0.918
0.92
0.9225
Support levels:
0.909
0.906
0.903
