USD/CHF is expected to trade in a lower range as the pair movement is capped by a negative trend line. The pair remains under pressure below its negative trend line, and is likely to post further decline. The falling 20-period and 50-period should also maintain the strong selling pressure. Besides, the relative strength index is mixed to bearish. In which case, as long as 0.9740 isn't surpassed, look for a new pullback to 0.9645 and 0.9620 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 0.9645. A break of this target will move the pair further downwards to 0.9620. The pivot point stands at 0.9740. 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 this scenario, long positions are recommended with the first target at 0.9765 and the second one at 0.98.
Resistance levels: 0.9765, 0.9800, 0.9845
Support levels: 0.9645, 0.9620, 0.9575
The material has been provided by InstaForex Company - www.instaforex.com