USD/CHF is expected to trade with a barish bias as the pair is turning down. The pair has clearly reversed down after the failure of an upside breakout at 0.9725 (a major resistance level). Both the 20-period and 50-period MAs are also turning down confirming intraday trend reversal. Moreover, the RSI indicator is below its neutrality area of 50 and lacks upward momentum. As long as 0.9725 holds on the upside, further decline to 0.9640 and 0.9600 seems to be on the cards.
Trading recommendations:
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 0.9640. A breakout of that target will move the pair further downwards to 0.960. The pivot point stands at 0.9725. 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 0.9765 and the second target at 0.9795.
Resistance levels: 0.9765 0.9795 0.9825
Support levels: 0.9640 0.96 0.9575
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