USD/CHF is expected to trade with bullish bias. The pair is consolidating below its 20-period and 50-period intraday MAs. The intraday RSI is below its neutral area at 50%. Nevertheless, a support base has formed around 0.9585, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as the key support at 0.9585 is not broken, look for a technical rebound to 0.9635 and even 0.9675 in extension.
The daily chart is mixed as the RSI and the MACD is in bearish mode. The price is below its 20- and 50-day moving averages.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.9635 and the second target at 0.9665. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9535. A break of this target would push the pair further downwards, and one may expect the second target at 0.95. The pivot point is at 0.0.9585.
Resistance levels: 0.9635 0.9665 0.97
Support levels: 0.9535 0.95 0.9465
The material has been provided by InstaForex Company – www.instaforex.com