USD/CHF is expected to trade with bullish bias and continue its rebound. The pair bounced off its horizontal support base around 0.9605, and it is likely to challenge its next resistance at 0.9690. Meanwhile, a bullish cross was identified between the 20-period and 50-period moving averages that suggests that a new rebound should continue. Besides, the relative strength index stays bullish above its neutrality area at 50. To sum up, as long as 0.9605 is not broken, there is a possibility of an advance to 0.9690 and 0.9715 in extension.
Trading recommendation:
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 0.9690 and the second one at 0.9715. In the alternative scenario, short positions are recommended with the first target at 0.9570 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 0.9530. The pivot point is at 0.9605.
Resistance levels: 0.9690, 0.9715, 0.9750
Support levels: 0.9570, 0.9550, 0.9530
The material has been provided by InstaForex Company - www.instaforex.com