USD/CHF is expected to trade in a lower range as key resistance is seen at 0.9890. The pair struck against the key resistance at 0.9890 yesterday but failed to close above that level. Currently, it is back below both the 20- and 50-period moving averages. At the same time, the relative strength index is below the neutrality level of 50 lacking upward momentum. Therefore, as long as 0.9830 holds as the key resistance, the pair should return to the first downside target at 0.980 (a major support seen in December 24-28).
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 0.9830. A break of that target will move the pair further downwards to 0.98. The pivot point stands at 0.9890. 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 0.9915 and the second target at 0.9940.
Resistance levels: 0.9915, 0.9940, 0.9970
Support levels: 0.9830, 0.98, 0.9755
The material has been provided by InstaForex Company – www.instaforex.com