USD/CHF is expected to trade with bearish bias. The pair has broken below its support at 0.9725, which becomes a resistance now, and has accelerated on the downside. The 20- and 50-period MAs are declining and are currently playing resistance roles. The intraday RSI is below its neutrality level at 50 and lacks upward momentum. As long as 0.9725 is not broken, the pair is likely to consolidate towards 0.9640. A break below this level would call for a further drop towards 0.96.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9640. A breakout of that target will move the pair further downwards to 0.960. The pivot point stands at 0.9725. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9765 and the second target at 0.9795.
Resistance levels: 0.9765 0.9795 0.9825
Support levels: 0.9640 0.96 0.9575
