FX.co ★ Technical analysis of USD/CHF for August 11, 2014

Overview:

USD/CHF is expected to trade in a lower range. It is undermined by the weaker USD sentiment and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the franc sales on buoyant EUR/CHF cross and dovish Swiss National Bank's monetary policy. The daily chart is tilting negative as stochastics is in a bearish mode, MACD is turning bearish and bearish parabolic stop-and-reverse signal was hit on Friday.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.9030. A break of this target will move the pair further downwards to 0.9010. The pivot point stands at 0.9085. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.9115 and the second target at 0.9135.

Resistance levels:
0.9115
0.9135
0.9155

Support levels:
0.9030
0.9010
0.8975