USD/CHF is expected to trade in a lower range. The pair remains capped by its declining 20- and 50-period MAs. The process of the lower highs and lows is also intact, which should confirm a negative trend. Besides, the downside momentum is still strong as the intraday RSI is bearish and is not showing any reversal signs. In these perspectives, further decline is highly expected to challenge 0.9455. A break below 0.9245 would trigger a drop towards 0.92.
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 0.9245. A break of that target will move the pair further downwards to 0.92. The pivot point stands at 0.9455. 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 0.9505 and the second target at 0.9550.
Resistance levels: 0.9505 0.9550 0.96
Support levels: 0.9245 0.92 0.9160
The material has been provided by InstaForex Company – www.instaforex.com