Overview:
USD/CHF is consolidating with bearish bias after hitting a two-year low. USD/CHF is undermined by flows to haven CHF amid increased risk aversion. But USD/CHF losses are tempered by franc sales in rebounding EUR/CHF cross. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold area; the 5- & 15-day moving averages are 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 0.8845 in view; a breach of this target will move the pair further downwards to 0.882. The pivot point stands at 0.891. 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 0.8935 and the second target at 0.8955.
Resistance levels:
0.8845
0.882
0.8785
Support levels:
0.8935
0.8955
0.8985
