USD/CHF is expected to trade with bullish bias. From a technical point of view, the pair is bouncing off its key support base around 0.9710, and is heading up towards 0.9845. The immediate trend is up, and the momentum is strong. Furthermore, the rising 20- and 50-period MAs play support roles, and should prevent any potential downsides. To sum up, as long as 0.9710 is not broken, a further advance seems to be on the cards to 0.9845 and 0.99 in extension.
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 0.9845 and the second target at 0.99. In the alternative scenario, short positions are recommended with the first target at 0.9645 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 0.96. The pivot point is at 0.9710.
Resistance levels: 0.9845 0.99 0.9945
Support levels: 0.9645 0.96 0.9550
The material has been provided by InstaForex Company – www.instaforex.com