Overview:

USD/CHF is expected to consolidate after hitting near-two-month low 0f 0.8851 on Monday. It is undermined by the weaker U.S. dollar sentiment and franc demand on buoyant CHF/JPY cross. But USD/CHF downside is limited by the franc sales on rising EUR/CHF cross. Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone.

Trading recommendation:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8915 and the second target at 0.893. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.883. A breach of this target will push the pair further downwards and one may expect the second target at 0.8795. The pivot point is at 0.8855.

Resistance levels:
0.8915
0.8930
0.895

Support levels:
0.8830
0.8795
0.8765