Overview:
USD/CHF is expected to trade with bearish bias. It is undermined by the flows to haven CHF as the crisis in Ukraine intensifies and soft USD sentiment. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy stance. 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 0.8770. A breach of this target will move the pair further downwards to 0.8755. The pivot point stands at 0.8830. 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 0.8845 and the second target at 0.8860.
Resistance levels:
0.8845
0.8860
0.8880
Support levels:
0.8770
0.8755
0.8720
