Overview:
USD/CHF is expected to continue its downtrend. It is underpinned by negative U.S. dollar sentiment and drop in Switzerland PMI to 53.9 in December from 56.5 in November. But CHF sentiment is soothed by the rise in Switzerland KOF economic barometer to 1.95 in December from 1.85 in November. Daily chart is positive-biased as MACD and stochastics is bullish.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8955 and the second target at 0.8925. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.91. A breach of this target will push the pair further downwards and one may expect the second target at 0.9135. The pivot point is at 0.906.
Resistance levels:
0.91
0.9135
0.9165
Support levels:
0.8955
0.8925
0.89
