Overview:
USD/CHF is expected to consolidate in a lower range after hitting a four-day high at 0.8895 on Wednesday. It is undermined by the weaker dollar sentiment and franc demand on retreating EUR/CHF cross. Daily chart is mixed as MACD is bearish, but stochastics is rising from oversold zone.
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 0.8790. A breach of this target will move the pair further downwards to 0.8760. The pivot point stands at 0.840. 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 0.8895 and the second target at 0.8920.
Resistance levels:
0.8895
0.8920
0.8945
Support levels:
0.8790
0.8760
0.8740
