USD/CHF is expected to continue its rebound. The pair is still heading upwards after the bullish penetration of its previous resistance at 1.0175, which now plays a role of support. The 20-period moving average is also turning up, and should continue to push prices higher. Furthermore, the momentum indicator such as relative strength index is bullish above its neutrality area of 50. In these perspectives, as long as 0.6485 holds on the downside, watch for a new bounce to 1.0250 and 1.0290.
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 1.0250 and the second target at 1.0290. In the alternative scenario, short positions are recommended with the first target at 1.0155 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 1.0120. The pivot point is at 1.0175.
Resistance levels: 1.0250, 1.0290, 1.0345
Support levels: 1.0155, 1.0120,1.01
The material has been provided by InstaForex Company - www.instaforex.com