USD/CHF is expected to extend its downside movement. After yesterday's sharp decline, the pair is now in a downtrend, capped by its falling 20-period and 50-period moving averages. The relative strength index is negative, but is close to its support at 30. Even though a technical rebound cannot be ruled out at the current stage, its extent should be very limited by 0.9845. To conclude, as long as 0.9845 is not surpassed, a break below 0.9745 would trigger a drop towards 0.9715.
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 0.9745. A break of this target will move the pair further downwards to 0.9715. The pivot point stands at 0.9845. 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 0.9915 and the second target at 0.9940.
Resistance levels: 0.9915, 0.9940, 0.9995
Support levels: 0.9745, 0.9715, 0.9675
