USD/CHF is expected to trade in a higher range and post some new gains. The pair stands firmly above its key horizontal support at 0.9770, which has been tested for at least 3 times. Both the 20-period and 50-period moving averages are turning up, confirming a positive outlook. Last but not least, the relative strength index is bullish above its neutrality area at 50. In these perspectives, as long as 0.9770 holds on the downside, further advance seems to be in the cards to 0.9890 and 0.9945 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 0.9890 and the second one, at 0.9945. In the alternative scenario, short positions are recommended with the first target at 0.9745 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 0.970. The pivot point is at 0.9770.
Resistance levels: 0.9890, 0.9945, 0.9985
Support levels: 0.9745, 0.97, 0.9660
The material has been provided by InstaForex Company - www.instaforex.com