Overview:
USD/CHF is expected to trade in a lower range. It is supported by the dovish Swiss National Bank's monetary policy stance and franc sales on buoyant EUR/CHF cross. Daily chart is positive-biased as MACD is bullish, five-day moving average is above 15-day MA and advancing, stochastics stays elevated at overbought zone.
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 0.89. A breach of this target will move the pair further downwards to 0.8876. The pivot point stands at 0.8949. 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 0.8955 and and the second target at 0.8975.
Resistance levels:
0.8955
0.8975
0.9010
Support levels:
0.89
0.8875
0.8845
