USD/CHF is expected to trade with a bearish outlook. Despite the pair posting a rebound from 0.9945 (the low of November 2), the upward potential is likely to be limited by the resistance at 1.0005. The declining 50-period moving average is playing a resistance role.
On the political ground, U.S. President Donald Trump officially nominated Federal Reserve Governor Jerome Powell to be central bank's chairman.
To sum up, as long as 1.0015 holds on the upside, look for a return with targets at 0.9945 and 0.9920 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 1.0015, Take Profit: 0.9945
Resistance levels: 1.0040, 1.0070, and 1.0100
Support levels: 0.9945, 0.9920, and 0.9900
The material has been provided by InstaForex Company - www.instaforex.com