USD/CHF is expected to trade in a lower range as the key resistance stands at 1.0220. The pair has broken below its short-term rising trend line, and is now under pressure below the key resistance at 1.22. The upward potential is likely to be limited by this threshold. The relative strength index remains weak below its neutrality area at 50. Hence, even though a continuation of the technical rebound cannot be ruled out at the current stage, its extent should be limited. In case of breaches below 1.0220, look for a new pullback to 1.0150 and 1.0120 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 1.0150. A break of that target will move the pair further downwards to 1.0120. The pivot point stands at 1.0220. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 1.0250 and the second target at 1.0290.
Resistance levels: 1.0250, 1.0290, 1.0345
Support levels: 1.0150, 1.0120,1.01
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