USD/CHF is under pressure and is expected to trade in a lower range. The pair accelerated on the downside after the downside penetration of its previous horizontal support at 0.9640. Besides, the prices are still capped by the descending 20-period and 50-period moving averages, which should continue to push the prices lower. In addition, the key horizontal resistance at 0.9640 maintains strong selling pressure. To conclude, the pair is expected to challenge its next support at 0.9555. A break below this threshold would trigger a new pullback towards 0.9530.
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 0.9555. A break of this target will move the pair further downwards to 0.9530. The pivot point stands at 0.9640. 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 0.9660 and the second one at 0.9680.
Resistance levels: 0.9660, 0.9680, 0.9715
Support levels: 0.9555, 0.9530, 0.9270
The material has been provided by InstaForex Company - www.instaforex.com