USD/CHF is expected to trade with bullish bias. The pair posted a strong rebound yesterday, supported by its rising 20-period and 50-period moving averages. The immediate trend is up, and the momentum is still strong. The formation of higher highs and lows remains intact, which should indicate a solid uptrend. Hence, as long as 0.9885 is not broken, further upside is most likely to occur to 1.00 and 1.0030 in extension.
Trading Recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 1.00 and the second one at 1.0030. In the alternative scenario, short positions are recommended with the first target at 0.9840 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.9785. The pivot point is at 0.9885.
Resistance levels: 1.00, 1.0030, 1.0060
Support levels: 0.9840, 0.9785, 0.9750
The material has been provided by InstaForex Company - www.instaforex.com