USD/CHF is expected to trade with bearish bias. The pair has reversed down while being capped by the descending 20-period and 50-period moving averages. The key resistance at 0.9985 still holds on the upside. Besides, the relative strength index is weak below its neutrality area at 50. In conclusion, as long as 0.9985 is not surpassed, a new pullback seems to be on the cards to at least 0.9870 (the low of December 3). In case of a breakout, look for a further decline to 0.9830.
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 0.9870. A break of that target will move the pair further downwards to 0.9830. The pivot point stands at 0.9950. 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 0.9985 and the second target at 1.0035.
Resistance levels: 0.9985 1.0035 1.0075
Support levels: 0.9870 0.9830 0.9790
