Technical Analysis of USD/CHF for May 06, 2016
USD/CHF is expected to trade in a higher range as target 0.9735 is in sight. The pair remains on the upside and is expected to post further rebound. The 20-period and 50-period moving averages are playing support roles. Besides, the relative strength index is still above 50. Further upside is therefore expected with the next horizontal resistance and overlap set at 0.9735 at first. A break above this level would call for further advance towards 0.9765.
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 0.9765. In the alternative scenario, short positions are recommended with the first target at 0.9570 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 0.9530. The pivot point is at 0.9620.
Resistance levels: 0.9735, 0.9765, 0.9815
Support levels: 0.9570, 0.9530, 0.9490
The material has been provided by