USD/CHF is expected to trade in a lower range. Technically, the pair broke below its support at 0.9745 and remains weak below its 20- and 50-period intraday MAs, which are turning down and play resistance roles. The upside potential should also be limited by the horizontal resistance at 0.9695. Moreover, the intraday RSI is bearish below its neutrality area at 50. In these perspectives, a break below 0.9695 would trigger further drop toward 0.9670.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9795 and the second target at 0.9825. In the alternative scenario, short positions are recommended with the first target at 0.9695 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9670. The pivot point is at 0.9715.
Resistance levels: 0.9795 0.9825 0.9850
Support levels: 0.9695 0.9670 0.9630
The material has been provided by InstaForex Company – www.instaforex.com