Technical Analysis of USD/CHF for April 29, 2016
USD/CHF is expected to trade in a lower range as the pair is bearish within a declining channel. The pair remains under pressure within its descending channel and is likely to post further decline. The falling 20-period and 50-period moving averages should also maintain strong selling pressure on the prices. In addition, the relative strength index is below it neutrality area at 50. In this case, as long as 0.9700 is not surpassed, look for a new pullback to 0.9595 and 0.95690 in extension.
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 0.9595. A break of this target will move the pair further downwards to 0.9560. The pivot point stands at 0.9700. 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 this scenario, long positions are recommended with the first target at 0.9730 and the second one at 0.9765.
Resistance levels: 0.9730, 0.9765, 0.9800
Support levels: 0.9595, 0.9560, 0.95
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