USD/CHF is expected to trade in a lower range and continue its downside movement. Technically, the pair remains weak below its falling 50-period moving average. The nearest resistance at 0.9595 maintains the strong selling pressure on the prices. Furthermore, the relative strength index is mixed to bearish below its neutrality area at 50. Hence, a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as 0.9595 holds on the upside, look for a return to 0.95 and 0.948 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 0.9525. A break of this target will move the pair further downwards to 0.9500. The pivot point stands at 0.9600. 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 0.9625 and the second target at 0.9650.
Resistance levels: 0.9625, 0.9650, 0.9675
Support levels: 0.9525 , 0.9500, 0.9465
The material has been provided by InstaForex Company – www.instaforex.com
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