Overview:
USD/CHF is to trade with bearish bias. Swiss franc sentiment is boosted by stronger-than-expected Switzerland 3Q GDP on-quarter growth of +0.5% and +1.9% on-year growth (versus forecast +0.3% and +1.7% respectively). USD/CHF is also undermined by franc demand on buoyant CHF/JPY cross amid weak yen sentiment. But USD/CHF losses are tempered by positions adjustment before weekend. Daily chart is negative-biased as MACD & stochastics 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 0.9015 in view; a breach of this target will move the pair further downwards to 0.899. The pivot point stands at 0.9065. 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 0.9085 and the second target at 0.911.
Resistance levels:
0.9085
0.911
0.913
Support levels:
0.9015
0.899
0.8975
