USD/CHF is expected to trade with a bearish bias as the key resistance is seen at 0.9775. While trading around the over-lapping 20- and 50-period moving averages, the pair remains capped by the key resistance at 0.9775. As long as 0.9775 is not surpassed, the pair could return to the first downside target at 0.9620. A breakout below this level would open the way to further weakness toward the horizontal support and overlap at 0.9550.
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 0.9620. A break of this target will move the pair further downwards to 0.9550. The pivot point stands at 0.9775. 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 0.9815 and the second one at 0.9880.
Resistance levels: 0.9815, 0.9880, 0.9975
Support levels: 0.9620, 0.9550, 0.9500
