The USD/CHF pair is under pressure. The pair is moving clearly in a downtrend, as the process of reaching lower highs and lows remains intact. The relative strength index has broken down its neutrality level of 50, calling for a further decline. Moreover, the nearest resistance at 0.9830 should maintain strong selling pressure on the prices. To sum up, we expect a new pullback to 0.9830 and 0.9800 below 0.980.
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 0.9830. A break of that target will move the pair further downwards to 0.98. The pivot point stands at 0.9915. 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 0.9940 and the second target at 0.9970.
Resistance levels: 0.9940 0.9970 0.9990
Support levels: 0.9830, 0.98, 0.9755
