USD/CHF is expected to trade with bearish bias. After yesterday's downside breakout of the bullish channel, the pair has clearly reversed down, and seems likely to post further decline. The 20-period and 50-period moving averages are also turning down, and should continue pushing prices lower. Besides, the RSI is negatively oriented, and lacks upward momentum. Therefore, as long as 1.0175 is not surpassed, expect a return to 1.0015 and 1.0075 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 1.0115. A break of that target will move the pair further downwards to 1.0075. The pivot point stands at 1.0175. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 1.0220 and the second target at 1.0250.
Resistance levels: 1.0220 1.0250 1.0275
Support levels: 1.0115 1.0075 1.0040
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