USD/CHF is under pressure now. We expect it to trade in a lower range with key resistance at 0.9990. The pair continued on its downward path while being capped by the descending 20-period moving averages. The relative strength index stays below the neutrality level of 50 lacking upward momentum. The intraday outlook is still very bearish and the pair should test the first downside target at 0.9870 (around the low of January 8). Only a breakout above the key resistance at 0.9990 (a level of over-lapping support and resistance, and around the 50-period moving average) would turn the intraday outlook bullish.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9870. A break of that target will move the pair further downwards to 0.9840. The pivot point stands at 0.9990. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 1.0035 and the second target at 1.0070.

Resistance levels: 1.0035, 1.0070, 1.0150

Support levels: 0.9870, 0.9840, 0.9795