Overview:
USD/CHF is expected to consolidate with bearish bias after hitting its four-day high at 0.9038 Wednesday. It is supported by the positive dollar sentiment and franc sales on soft CHF/JPY cross and on buoyant GBP/CHF cross. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode.
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. Short position is recommended with the first target at 0.892 in mind. A breach of this target will move the pair further downwards to 0.89. The pivot point stands at 0.8995. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is most favourably expected to move further to the upside. In that scenario, a long position is recommended with the first target at 0.902 and the second target at 0.904.
Resistance levels:
0.902
0.904
0.906
Support levels:
0.892
0.89
0.8855
