USD/CHF is expected to trade with a bullish bias and looking forward for a target at 0.9800. The pair resumed its bullish trend and is now heading upward, supported by its rising 20-period moving average. Meanwhile, the relative strength index stands firmly above 50. Furthermore, a strong support base has formed around 0.9725, which should limit any downward attempts. Hence, as long as 0.9725 is not broken, look for further advance to 0.9800 and 0.9845 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 0.98 and the second one, at 0.9845. In the alternative scenario, short positions are recommended with the first target at 0.9695 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 0.9645. The pivot point is at 0.9725.
Resistance levels: 0.9800, 0.9845, 0.9890
Support levels: 0.9695, 0.9645, 0.9600
The material has been provided by InstaForex Company - www.instaforex.com