USD/CHF is under pressure. The pair posted a new low yesterday, and is now very close to its support at 0.9820. A test is highly expected in the coming trading hours. Nevertheless, the falling 20-period and 50-period moving averages maintain strong selling pressure on prices. The relative strength index is mixed to bearish suggesting that the bearish trend may continue. In these perspectives, as long as 0.9935 is not surpassed, look for a test of 0.9825. If there is a breakout, a further decline is expected to 0.9790.
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 0.9820. A break of this target will move the pair further downwards to 0.9790. The pivot point stands at 0.9935. 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 0.9970 and the second target at 1.000.
Resistance levels: 0.9970, 1.00, 1.0030
Support levels: 0.9820, 0.9790, 0.9750