Overview:

USD/CHF is expected to consolidate with the bearish bias after hitting a three-day low at 0.8918 on Tuesday. It is undermined by the weaker dollar sentiment. But CHF sentiment is dented by flat Switzerland's June CPI (versus forecast +0.1% on-year), nominal 1.0% fall in Swiss retail sales in May. USD/CHF downside is also limited by the franc sales on buoyant EUR/CHF cross and on soft CHF/JPY cross. The daily chart is still positive-biased as stochastics is bullish, negative MACD histogram bars are contracting, five-day moving average is above 15-day MA and is advancing.

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. Short position is recommended with the first target at 0.89. A break of this target will move the pair further downward to 0.8880. The pivot point stands at 0.8960. In case the price moves in the opposite direction and bounces back from the support level, 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 0.8975 and the second target at 0.9000.

Resistance levels:
0.8975
0.90
0.9035

Support levels:
0.89
0.8880
0.8860