Overview:
USD/CHF is consolidating with bearish bias after hitting a near-two-year low of 0.8888 Thursday. It is supported by the franc sales in the buoyant EUR/CHF cross. But USD/CHF gains are tempered by the soft dollar sentiment; positions adjustment before the weekend. Daily chart is mixed as MACD and stochastics are bearish, the 5-day moving average is below the 15-day MA and declining; but bullish hammer candlestick pattern was completed Thursday.
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 0.889 in view; a breach of this target will move the pair further downwards to 0.8870. The pivot point stands at 0.9. 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 0.9035 and the second target at 0.9065.
Support levels:
0.889
0.8870
0.8830
Resistance levels:
0.9035
0.9065
0.91