Overview:

USD/CHF is expected to consolidate in a lower range as markets await the FOMC announcement. USD/CHF is supported by the contagion from weak euro on CHF and dovish Swiss National Bank's monetary policy stance. But USD/CHF gains are tempered by the soft dollar sentiment. Daily chart is positive-biased as MACD and stochastics both are turning bullish.

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 0.8785. A breach of this target will move the pair further downwards to 0.8765. The pivot point stands at 0.8825. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8845 and the second target at 0.8860.

Resistance levels:
0.8845
0.8860
0.8895

Support levels:
0.8785
0.8765
0.8720