USD/CHF is expected to trade with a bearish bias as the key resistance is seen at 1.0055. The pair failed to break out above its nearest resistance at 1.0055 after the second test, and also broke below its 20-period and 50-period simple moving average on an intraday basis. The outlook remains negative, as the relative strength index is weak below its neutrality area of 50. In these perspectives, a new pullback to 0.9870 and 0.9830 seems to be on the cards, as long as 1.0055 is resistance.
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 1.0175. The pivot point stands at 1.0055. 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 0.9875 and the second target at 0.9810.
Resistance levels: 1.0115 1.0175 1.0245
Support levels: 0.9875 0.9810 0.9745
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