USD/CHF is expected to trade in a lower range. Currently trading at 0.9885, the pair has broken below 0.9940, and is accelerating lower. Both 20-period and 50-period moving averages are dropping and should play resistance roles. Therefore, as long as 0.9940 is not broken above, the pair is expected to decline toward 0.9860 at first. A break below this level would open the way to further weakness toward 0.9805 and 0.9775 in extension.
Trading recommendation:
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 0.9980. A break of this target will move the pair further downwards to 1.0010. The pivot point stands at 0.9940. 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 0.9860 and the second target at 0.9805.
Resistance levels: 0.9980, 1.0010, 1.0075
Support levels:0.9860, 0.9805, 0.9775
The material has been provided by InstaForex Company - www.instaforex.com