Overview:
The USD/CHF is to consolidate with bearish bias after hitting two-week low of 0.9005 Thursday. Undermined by negative dollar sentiment; the franc demand on buoyant CHF/JPY cross and on soft EUR/CHF cross. But USD/CHF losses tempered by positions adjustment before weekend. The daily chart mixed as MACD bullish, but stochastics falling from overbought.
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. A short position is recommended with the first target at 0.9005 in view; a breach of this target will move the pair further downwards to 0.8975. The pivot point stands at 0.9065. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 0.91 and the second target at 0.9145.
Support levels:
0.9005
0.8975
0.895
Resistance levels:
0.91
0.9145
0.92