Technical Analysis of USD/CHF for April 20, 2016
USD/CHF is expected to trade with a bearish bias as key resistance is at 0.9645. Technically, the pair remains under pressure below its falling 50-period moving average, which plays a strong resistance role since April 18, 2016. In addition, the key horizontal resistance at 0.9645 also maintains the selling pressure. Last but not least, the sequence of lower highs and lows remains intact, which should confirm a negative outlook. In which case, as long as 0.9645 is not surpassed, look for choppy price action with a bearish bias.
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 0.9580. A break of this target will move the pair further downwards to 0.9560. The pivot point stands at 0.9645. 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 0.9670 and the second target at 0.9710.
Resistance levels: 0.9670, 0.9710, 0.9740
Support levels: 0.9580, 0.9560 , 0.95
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