Overview:
USD/CHF is expected to consolidate with bearish bias as markets await U.S. nonfarm payrolls report. USD/CHF is undermined by the franc demand on buoyant CHF/JPY cross and weaker dollar sentiment. But USD/CHF downside is limited by the franc sales on buoyant EUR/CHF cross and positions adjustment before weekend. Daily chart is negative-biased as MACD is in bearish mode, stochastics is turning bearish, five and 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. Short position is recommended with the first target at 0.8730. A breach of this target will move the pair further downwards to 0.8710. The pivot point stands at 0.8825. 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 0.8730 and the second target at 0.8710.
Resistance levels:
0.8860
0.8895
0.8925
Support levels:
0.8730
0.8710
0.8675
