Overview:
USD/CHF is expected to consolidate with bearish bias as markets await U.S. non-farm payrolls report. USD/CHF is undermined by the franc demand on soft EUR/CHF cross. But USD/CHF downside is limited by the dovish Swiss National Bank's monetary policy stance and positions adjustment before the weekend. Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average staged bearish crossover against 15-day MA.
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 0.8765. A breach of this target will move the pair further downwards to 0.8730. The pivot point stands at 0.8810. 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 0.8825 and the second target at 0.8845.
Resistance levels:
08825
0.8845
0.8860
Support levels:
0.8765
0.8730
0.87
