USD/CHF is expected to trade in a lower range as the key resistance is seen at 0.9925. Technically, the pair remains weak below its nearest resistance at 0.9925, which is expected to limit any upward attempts. The relative strength index lacks upward momentum. Even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be very limited. As long as the resistance at 0.9920 is not surpassed, the risk of a breakout below 0.9850 remains high.
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 0.9850. A break of this target will move the pair further downwards to 0.9820. The pivot point stands at 0.9925. 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 0.9945 and the second target at 0.9970.
Resistance levels: 0.9945, 0.9970, 1.00
Support levels: 0.9850, 0.9820, 0.9775
