Overview:
USD/CHF is expected to trade in a lower range. USD/CHF is undermined by the negative dollar sentiment, and the franc demand in the soft EUR/CHF cross. But CHF sentiment is dented by the rise in Switzerland unemployment rate to 3.5% in December from 3.2% in November,and lower-than-expected Switzerland December annual CPI of +0.1% (versus +0.2% forecast). Daily chart is mixed as MACD is bullish, but stochastics is bearish in overbought zone.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.8985 in mind. A breach of this target will move the pair further downwards to 0.897. The pivot point stands at 0.907. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.91 and the second target at 0.9125.
Resistance levels:
0.91
0.9125
0.9155
Support levels:
0.8985
0.897
0.895
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