USD/CHF is expected to trade in a lower range as Key resistance is at 0.9955. Following the recent downside penetration of 0.9955, the pair remains under pressure below this key level. Even though a technical rebound cannot be ruled out, its extent should be very limited, as the 20-period and 50-period simple moving averages are turning down, and act as strong resistance roles. In that case, as long as 0.9955 holds on the upside, expect a new pullback to 0.9870 & 0.9850 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 0.9870. A break of this target will move the pair further downwards to 0.9850. The pivot point stands at 0.9955. 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 0.9980 and the second target at 1.0010.
Resistance levels: 0.9980, 1.0010, 1.0030
Support levels: 0.9870, 0.9850, 0.9815
