USD/CHF is expected to trade in a lower range as the key resistance is at 0.9640. The pair failed to break above the horizontal resistance at 0.9640 and remains capped by its falling 50-period moving average. In addition, a bearish cross has been identified between the 20-period and 50-period moving averages (a negative signal). At the same time, the relative strength index is badly directed below its neutrality area at 50. To conclude, as long as 0.9640 holds as the key resistance, the intraday outlook is still negative with targets at 0.9560 and 0.9545 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 0.9560. A break below this target will move the pair further downwards to 0.9545. 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 0.9685.
Resistance levels: 0.9660, 0.9685, 0.9705
Support levels: 0.9560, 0.9545, 0.9500
The material has been provided by InstaForex Company - www.instaforex.com