USD/CHF is under pressure. The pair remains capped by its declining 20-period and 50-period moving averages since June 6 and is challenging the nearest support at 0.9715. Besides, the relative strength index remains weak below its neutrality area at 50 and lacks upward momentum. The first target to the downside is therefore set at 0.9590. A break below this level would trigger a new pullback towards 0.9550.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9590. A break of this target will move the pair further downwards to 0.9550. The pivot point stands at 0.9715. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9750 and the second one at 0.9780.
Resistance levels: 0.9750, 0.9780, 0.9810
Support levels: 0.9590, 0.9550, 0.95
The material has been provided by InstaForex Company – www.instaforex.com
The post Technical analysis of USD/CHF for June 08, 2016 appeared first on forex-analytics.press.