FX.co ★ USDCHF: under pressure (Oct 03, 2013)

Overview:
USD/CHF is quoting in a range. It is undermined by negative dollar sentiment. But USD/CHF downside is limited by the franc sales in the buoyant EUR/CHF cross. Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold, 5- and 15-day moving averages are declining.

Trading recommendation:

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. A short position is recommended with the first target at 0.899 in view; a breach of this target will move the pair further downwards to 0.8955. The pivot point stands at 0.903. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 0.906 and the second target at 0.9075.

Support levels:
0.899
0.8955
0.89

Resistance levels:
0.906
0.9075
0.9125