Technical Analysis of USD/CHF for May 05, 2016
USD/CHF is expected to trade with a bearish bias. The pair stands firmly above its key horizontal support at 0.9530 and is likely to post further advance to 0.9605 at first. The relative strength index is mixed to bullish, and also lacks downward momentum. The rising 50-period moving average plays well a support role. Therefore, as long as 0.9530 is not broken, look for further upsides to 0.9605 and 0.9655 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 0.9605 and the second one at 0.9655. In the alternative scenario, short positions are recommended with the first target at 0.9490 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 0.9435. The pivot point is at 0.9530.
Resistance levels: 0.9605, 0.9655, 0.9700
Support levels: 0.9490, 0.9435, 0.94
The material has been provided by InstaForex Company - www.instaforex.com