Technical analysis of USD/CHF for October 03, 2017

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All our targets which we predicted in Yesterday's analysis have been hit. The pair is still expected to continue its upside movement. The pair is trading above its rising 20-period and 50-period moving averages, which play support roles and maintain the bullish bias. The relative strength index stands firmly above its neutrality level at 50.

The U.S. Institute for Supply Management (ISM) reported that its manufacturing index surged to 60.8 in September (vs. 58.1 expected), the highest level since May 2004, from 58.8 in August. The Commerce Department said construction spending grew 0.5% on month in August, compared with +0.4% expected and a decline of 1.2% in July.

Therefore, as long as 0.9730 holds on the downside, look for a further upside to 0.9830 and even to 0.9850 in extension.

Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates a bullish position, and the price below the pivot points indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 0.9730, Take Profit: 0.9830

Resistance levels: 0.9830, 0.9850, and 0.9875

Support levels: 0.9700, 0.9685, and 0.9625

The material has been provided by InstaForex Company - www.instaforex.com