USD/CHF is expected to trade in a lower range as the key resistance is at 1.0800. Overnight, the pair challenged the key resistance at 1.0800 repeatedly, but has remained on the downside. While technical indicators (20-, 50-period moving averages, intraday relative strength index) suggest a possible further rebound, the pair is showing subdued upward momentum. If the 1.0800 mark is not surpassed, the pair stands a higher chance of returning to the first downside target at 0.9970.
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 0.9970. A break of that target will move the pair further downwards to 0.9930. The pivot point stands at 1.0080. 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 1.0110 and the second target at 1.0140.
Resistance levels: 1.0110, 1.0140, 1.0175
Support levels: 0.9970, 0.9930, 0.99
