USD/CHF is expected to trade with bearish bias. The pair fell sharply yesterday after the downside break of 0.9720, representing the lower boundary of its trading-range pattern. Now there is a high chance that the pair may continue to drop towards 0.9598 (Fibonacci projection). The technical indicators are bearish; the 20- and 50-period MAs reversed down, and the intraday RSI is negatively oriented. Hence, as long as 0.9690 is not surpassed, look for a further decline to 0.9590 and 0.9540.
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 0.9590. A break of that target will move the pair further downwards to 0.9540. The pivot point stands at 0.9690. 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 0.9745 and the second target at 0.98.
Resistance levels: 0.9745 0.98 0.9840
Support levels: 0.9590 0.9540 0.95
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