The USD/CHF pair got under pressure. The pair is clearly turning down being capped by its falling 20- and 50-period intraday MAs. The intraday RSI remains weak below its neutrality area of 50. Furthermore, the process of reaching lower highs and lows is taking place, which should confirm a bearish trend reversal. In that case, as long as 1.0055 (our trailing stop loss) acts as resistance, look for a new decline to 0.9980. A breakout below 0.9980 would trigger a bearish acceleration towards 0.9945.
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 0.9980. A break of that target will move the pair further downwards to 0.9945. The pivot point stands at 1.0050. 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 1.0090 and the second target at 1.00125.
Resistance levels: 1.00890 1.0125 1.0140
Support levels: 0.9980 0.9945 0.9915