Overview:
USD/CHF is expected to consolidate with bearish bias after hitting its seven-week low at 0.8868 on Tuesday. It is undermined by the weaker dollar sentiment and franc demand on buoyant CHF/JPY cross. Daily chart is negative-biased as MACD and stochastics are bearish, although latter oe is at oversold zone, 5 and 15 day moving averages are declining.
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. Short position is recommended with the first target at 0.8855. A breach of this target will move the pair further downwards to 0.883. The pivot point stands at 0.89. In case the price moves in the opposite direction, bounces back from support level, and then moves above its pivot point, it is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8995 and the second target at 0.902.
Resistance levels:
0.8955
0.8995
0.902
Support levels:
0.8855
0.883
0.88
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