Overview:
USD/CHF is expected to trade in lower range. It is undermined by the negative dollar sentiment and franc demand on the buoyant CHF/JPY cross and on the soft EUR/CHF cross. But the USD/CHF losses are tempered by the positions adjustment before weekend. Daily chart is negative-biased as the MACD is in bearish mode, stochastics are turning bearish.
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 0.8995. A breach of this target will move the pair further downwards to 0.902. The pivot point stands at 0.8955. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8995 and the second target at 0.902.
Resistance levels:
0.8995
0.902
0.904
Support levels:
0.89
0.888
0.8855
