Overview:

USD/CHF is expected to consolidate with bearish bias after hitting a three-week low at 0.8786 on Wednesday. It is undermined by the negative USD sentiment and franc demand on buoyant CHF/JPY cross. But USD/CHF losses are tempered by the dovish Swiss National Bank's monetary policy stance. Daily chart is negative-biased as stochastics is bearish, MACD is staging bearish crossover against its exponential moving average.

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 0.8790. A breach of this target will move the pair further downwards to 0.8760. The pivot point stands at 0.8845. 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 0.8870 and the second target at 0.8890.

Resistance levels:
0.8870
0.8890
0.8910

Support levels:
0.8790
0.8760
0.8730