Overview:
USD/CHF is expected to trade in a lower range. It is undermined by the weaker USD sentiment. But USD/CHF losses are tempered by the franc sales on soft CHF/JPY cross and dovish Swiss National Bank's monetary policy. The daily chart is mixed as MACD is bullish, five and 15-day moving averages are advancing but stochastics is turned bearish in the overbought zone.
Trading recommendations:
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 0.9035. A break of this target will move the pair further downwards to 0.9010. The pivot point stands at 0.9080. In case the price moves in the opposite direction and bounces back from the support level, then it will 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 0.9095 and the second target at 0.9110.
Resistance levels:
0.9095
0.9110
0.9130
Support levels:
0.9035
0.9010
0.8975