Overview:
USD/CHF is expected to trade with risks skewed higher. It is underpinned by the positive dollar sentiment. But the USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross and on the buoyant CHF/JPY cross and positions adjustment before weekend. Daily chart is mixed as MACD is bearish, five- and 15-day moving averages are declining, but stochastics are bullish at oversold zone.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8910 and the second target at 0.893. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8845. A breach of this target will push the pair further downwards and one may expect the second target at 0.8825. The pivot point is at 0.8860.
Resistance levels:
0.891
0.893
0.865
Support levels:
0.8845
0.8825
0.8875