Overview:
USD/CHF is going to trade in a lower range, undermined by weaker dollar sentiment. Data focus: 0700 GMT Switzerland October UBS consumption indicator. Daily chart is negativly biased as MACD and stochastics are bearish, although latter at oversold; five-day moving average is below 15-day MA and 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. A short position is recommended with the first target at 0.911 in view; a breach of this target will move the pair further downwards to 0.913. The pivot point stands at 0.9085. 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 0.904 and the second target at 0.9015.
Resistance levels:
0.911
0.913
0.9165
Support levels:
0.904
0.9015
0.8975
