Overview:

USD/CHF is expected to trade in a lower range. It is undermined by the weaker dollar sentiment and franc demand on the buoyant CHF/JPY cross. But USD/CHF losses are tempered by Swiss National Bank's loose monetary policy. The daily chart is mixed as MACD is in the bearish mode, but stochastics turned neutral.

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 0.8880. A break of this target will move the pair further downward to 0.8860. The pivot point stands at 0.8940. 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 0.8960 and the second target at 0.8975.

Resistance levels:
0.8960
0.8975
0.90

Support levels:
0.8880
0.8860
0.8840