Overview:
USD/CHF is expected to consolidate with bearish bias after hitting its seven-week high at 0.8952 on Friday. It is supported by the franc sales on soft CHF/JPY cross and on buoyant EUR/CHF cross and dovish Swiss National Bank's monetary policy stance. But USD/CHF gains are tempered by the weaker dollar sentiment. Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought zone, 5- and 15- day moving averages are advancing.
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 0.8850. A breach of this target will move the pair further downwards to 0.8830. The pivot point stands at 0.8925. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8940 and the second target at 0.8960.
Resistance levels:
0.8940
0.8960
0.8995
Support levels:
0.8850
0.8830
0.88
