USD/CHF is under pressure. The pair has been capped by a negative trend line since April 28 and remains on the downside. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is therefore set at 0.9500. A break below this level would open the way to further weakness toward the horizontal support and overlap at 0.9475 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 0.950. A break of this target will move the pair further downwards to 0.9475. The pivot point stands at 0.9605. 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 this scenario, long positions are recommended with the first target at 0.9655 and the second one, at 0.9700.
Resistance levels: 0.9655, 0.9700, 0.9730
Support levels: 0.95, 0.9475, 0.9435
