USD/CHF is expected to continue its upside movement. The pair stands firmly above its key horizontal support at 0.9680, and is challenging its nearest resistance at 0.9765. At the same time, both 20-period and 50-period moving averages are playing support roles and the relative strength index stays above its neutrality area at 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9765 at first. A break above this level would call for further advance toward 0.9795.
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 0.9765 and the second one, at 0.9795. In the alternative scenario, short positions are recommended with the first target at 0.9655 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 0.9620. The pivot point is at 0.9680.
Resistance levels: 0.9765, 0.9795, 0.9850
Support levels: 0.9655, 0.9620, 0.9570
The material has been provided by InstaForex Company - www.instaforex.com