FX.co ★ USDCHF: Bearish Bias (Oct 21, 2013)

Overview:
USD/CHF is consolidating with bearish bias after hitting a two-week low at 0.9001 Friday. It is undermined by soft dollar sentiment; the franc demand in the soft EUR/CHF cross. But USD/CHF lossesare tempered by profit-taking on long-franc positions ahead of tomorrow's U.S. September non-farm payrolls and unemployment report. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.

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