USD/CHF is expected to trade with bearish bias. The pair seems to be stuck underneath the key resistance at 0.9800. Meanwhile, the intraday RSI indicator lacks upward momentum, and favors a new drop. As long as 0.9800 is not surpassed, the risk of the break below 0.9720 remains high. Our next down target is set at 0.9660 (the low of August 12).
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
The material has been provided by InstaForex Company – www.instaforex.com