Overview:
USD/CHF is expected to range-trade. It is buoyed by the franc sales on soft CHF/JPY cross and broadly firmer USD undertone. But USD/CHF upside is limited by the flows to safe-haven CHF amid increased investor risk aversion and franc demand on soft EUR/CHF cross. Daily chart is still negative-biased as MACD and stochastics are bearish, 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 0.8730. A breach of this target will move the pair further downwards to 0.8715. The pivot point stands at 0.8790. 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 0.8815 and the second target at 0.8840.
Resistance levels:
0.8815
0.8840
0.8875
Support levels:
0.8730
0.8715
0.8685
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