USD/CHF is expected to trade in a lower range. The pair remains under pressure after yesterday's downside breakout of its key horizontal level at 0.9715. The previous support now plays a resistance role, which should limit any upside room. Furthermore, both the 20-period and 50-period moving averages have already reversed down, confirming a negative outlook. To conclude, as long as 0.9715 is not surpassed, the risk of a slide below 0.9650 remains high. Our next down target is set at 0.9625.
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 0.9625. A break of this target will move the pair further downwards to 0.960. The pivot point stands at 0.9715. 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 0.9760 and the second target at 0.9785.
Resistance levels: 0.9760, 0.9785, 0.9835
Support levels: 0.9625, 0.96 , 0.9545