Overview:
USD/CHF is expected to consolidate with bearish bias after hitting a near-two-month low at 0.8718 on Tuesday. It is undermined by the negative dollar sentiment and franc demand on soft EUR/CHF cross. Daily chart is negative-biased as MACD and stochastics are bearish, although the latter is at oversold zone, five-day moving average is below 15-day MA and is 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 0.8715. A breach of this target will move the pair further downwards to 0.8695. The pivot point stands at 0.8765. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8785 and the second target at 0.8805.
Resistance levels:
0.8785
0.8805
0.8845
Support levels:
0.8715
0.8695
0.8650
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