USD/CHF is expected to trade in a lower range. The pair broke below its key level at 1.0070 triggering a bearish acceleration. Now the previous support at 1.0070 acts as a resistance and should limit any upward attempts. Even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. As long as 1.0070 holds on the upside, a further decline is likely to take place to 0.9955 (previous swing low) and 0.9960 in extension.
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 0.9955. A break of that target will move the pair further downwards to 0.9920. The pivot point stands at 1.0070. 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 1.0190.
Resistance levels: 1.0150, 1.0190, 1.0250
Support levels: 0.9955, 0.9920, 0.9875
