USD/CHF is expected to trade with bearish bias. Even though the pair posted a technical rebound yesterday, the intraday outlook is still negative as the prices remain under pressure below a strong resistance at 0.9800, which should limit any upside potential. The 50-period MA has reversed down; and it also acts as a resistance. The intraday RSI lacks upward momentum. According to these prospects, as long as the resistance at 0.9800 is not surpassed, the risk of a break below 0.967 remains high.
The daily chart is negative-biased as the MACD and stochastics are bearish.
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 0.9715. A break of that target will move the pair further downwards to 0.9660. The pivot point stands at 0.98. 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 0.9860 and the second target at 0.9940.
Resistance levels: 0.9860 0.9940 0.9995
Support levels: 0.9715 0.9660 0.9635
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