Overview:
USD/CHF is expected to trade with bearish bias. It is underpinned by the improved dollar sentiment and franc sales on buoyant EUR/CHF cross. But CHF sentiments are boosted by the drop in Switzerland jobless rate to 3.2% in April from 3.3% in March. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and is declining, but stochastics is turned bullish at oversold zone, inside-day-range pattern was completed on Wednesday.
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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