Technical Analysis of USD/CHF for March 18, 2016
USD/CHF is expected to trade in a lower range and continue its downside movement. The pair is heading downward, capped by its falling 50-period moving average. Currently trading at 0.9671, the pair seems likely to be forming a "bearish flag" pattern, and may continue to decline towards 0.9610 after a limited consolidation. Furthermore, the relative strength index lacks upward momentum. In conclusion, below 0.9745, look for further decline to 0.9610 and 0.9525 in extension.
Trading Recommendations:
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 0.9610. A break of this target will move the pair further downwards to 0.9202. The pivot point stands at 0.9745. 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 0.9790 and the second target at 0.9845.
Resistance levels: 0.9790, 0.9845, 0.9925
Support levels: 0.9610, 0.9525, 0.6475
The material has been provided by InstaForex Company - www.instaforex.com
