Technical Analysis of USD/CHF for May 04, 2016
USD/CHF is expected to trade with a bearish bias as the key resistance is at 0.9605. The pair has posted some bounces and is currently challenging its nearest resistance at 0.9605. The relative strength index is above 50 but lacks upward momentum, calling for caution. In this case, as long as 0.9605 is not surpassed, look for a new decline to 0.9505 as the first target. Alternatively, a break above 0.9570 would allow for a new bounce to 0.9605 at first.
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 0.9505. A break of this target will move the pair further downwards to 0.9435. The pivot point stands at 0.9605. 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 0.9655 and the second one, at 0.9700.
Resistance levels: 0.9655, 0.9700, 0.9730
Support levels: 0.9505, 0.9435 , 0.94
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