USD/CHF is expected to trade with a bearish bias. The pair stays below its key resistance at 0.9925 and looks for choppy price action with a bearish bias. Meanwhile the relative strength index is still below its neutrality area at 50, and is mixed to bearish. Last but not least, the 20-period and 50-period moving averages are heading downward. Hence, the first target to the downside is set at 0.9860. A break below this level would open the way to further weaknesses toward the horizontal support at 0.9830.
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 0.9860. A break of this target will move the pair further downwards to 0.9830. The pivot point stands at 0.9940. 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 0.9960 and the second target at 0.9980.
Resistance levels: 0.9960, 0.9980, 1.0010
Support levels:0.9860, 0.9805, 0.9775
The material has been provided by InstaForex Company – www.instaforex.com
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