Overview:
USD/CHF is to trade in lower range after hitting near-one-month low 0.9039 Wednesday. Underpinned by positive dollar sentiment, franc sales on buoyant EUR/CHF cross. But USD/CHF gains tempered by franc demand on buoyant CHF/JPY cross. Daily chart still negative-biased as MACD & stochastics is bearish, although latter is 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 0.904 in view; a breach of this target will move the pair further downwards to 0.915. 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 0.911 and the second target at 0.913.
Resistance levels:
0.911
0.913
0.9165
Support levels:
0.904
0.9015
0.8975
