The upside movement is expected to prevail in USD/CHF. The pair remains on the upside, supported by its ascending 20-period and 50-period moving averages. The relative strength index is also bullish above its neutrality area at 50. Furthermore, the nearest support at 1.0110 should limit any downside room, and call for a new bounce. To sum up, breaches above 1.0110 (our trailing stop loss) will lead to further upsides to 1.0175 and 1.0215 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. As long as the price holds above its pivot point, long positions are recommended with the first target at 1.0175 and the second target at 1.0215. In the alternative scenario, short positions are recommended with the first target at 1.0065 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 1.0030. The pivot point is at 1.0110.
Resistance levels: 1.0175, 1.0215,1.0245
Support levels: 1.0065,1.0030, 0.9990
The material has been provided by InstaForex Company - www.instaforex.com