USD/CHF is expected to trade with a bearish bias as key resistance is seen at 1.0035. The pair is still under pressure below its major resistance of 1.0035, which has been tested several times, and also holds on the upside. A bearish cross between the 20-period and 50-period moving averages has been identified (a strong negative signal). Moreover, the relative strength index broke out below its neutrality area of 50. Hence, as long as the resistance at 1.0035 is not surpassed, the risk of a breakout below 0.9945 remains high.
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 0.9945. A break of that target will move the pair further downwards to 0.9870. The pivot point stands at 1.0035. 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 1.0150 and the second target at 1.0175.
Resistance levels: 1.0115 1.0175 1.0245
Support levels: 0.9945 0.9870 0.9810
