FX.co ★ USD/CHF: Bearish bias (December 17, 2013)

Overview:
USD/CHF is in range-trade as caution prevails ahead of Wednesday's FOMC decision. Daily chart is mixed as MACD is bearish, but stochastics is bullish at oversold.

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 0.884 in view. A breach of this target will move the pair further downwards to 0.882. The pivot point stands at 0.889. 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 0.891 and the second target at 0.8935.

Resistance levels:
0.891
0.8935
0.896

Support levels:
0.884
0.882
0.88