USD/CHF is expected to trade with a bearish bias as key resistance is seen at 0.9865. The pair is turning down, and is still under pressure below the resistance at 0.9865, representing the key horizontal level and the current 50-period moving average. The 20-period moving average is reversing down plying a role of resistance. Furthermore, the relative strength index is below its neutrality area of 50. Therefore, as long as 0.9865 acts as resistance, look for choppy price actions with a bearish bias. Our next down targets are seen at 0.9795 and 0.9750.
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 0.9795. A break of that target will move the pair further downwards to 0.9750. The pivot point stands at 0.9865. 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 0.9915 and the second target at 0.9950.
Resistance levels: 0.9915 0.9950 0.9985
Support levels: 0.9795 0.9750 0.97
The material has been provided by InstaForex Company - www.instaforex.com