Overview:
USD/CHF is trading in lower range. The rate is supported by franc sales on soft CHF/JPY cross and buoyant EUR/CHF cross; broadly firmer dollar undertone. Daily chart is mixed as MACD and stochastics are bearish; but bullish-piercing candlestick pattern was completed on Monday.
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 0.9165 in view; a breach of this target will move the pair further downwards to 0.92. The pivot point stands at 0.913. 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 0.906 and the second target at 0.904.
Resistance levels:
0.9165
0.92
0.9235
Support levels:
0.906
0.904
0.902
