Overview:
USD/CHF is expected to trade in lower range. It is undermined by the flows to haven CHF as tensions between Ukraine and Russia escalate. USD/CHF is also weighed by the weaker USD sentiment. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy stance and positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is neutral.
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 0.8795. A breach of this target will move the pair further downwards to 0.8775. The pivot point stands at 0.88355. 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 0.8860 and the second target at 0.8880.
Resistance levels:
0.8860
0.8880
0.889
Support levels:
0.8795
0.8775
0.875
