USD/CHF is expected to trade with bullish bias. The pair accelerated on the downside following the bearish penetration of its key horizontal level at 0.9850, and is currently challenging its next support at 0.9745. Furthermore, both the 20-period and 50-period moving averages are heading downward, and call for further decline. In addition, the relative strength index is badly directed below its neutrality area at 50. To conclude, a break below 0.9745 would trigger a drop towards 0.9695 at first.
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 0.9745 and the second one at 0.9695. In the alternative scenario, short positions are recommended with the first target at 0.9895 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 0.9925. The pivot point is at 0.9850.
Resistance levels: 0.9895, 0.9925, 0.9975
Support levels: 0.9745, 0.9695, 0.9625
The material has been provided by InstaForex Company – www.instaforex.com
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