Technical analysis of USD/CHF for April 21, 2016
USD/CHF is expected to trade in a higher range as the pair is trading with a bullish bias. The pair posted a strong rebound yesterday, and is now supported by its ascending 20-period and 50-period moving averages. The relative strength index is positive above its neutrality area at 50, and is also displaying strong bullish momentum. In which case, as long as 0.9680 is not broken, an advance to 0.9645 and 0.9620 is likely 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. Therefore, long positions are recommended with the first target at 0.9735 and the second one, at 0.9760. 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 0.9620. The pivot point is at 0.9680.