Technical Analysis of USD/CHF for May 10, 2016
USD/CHF is expected to move further upside. The pair remains on the upside and is expected to post a further rebound. Meanwhile, the 20-period moving average is about to cross above the 50-period one, calling for a further upside. In addition, the relative strength index stays above its neutrality area at 50 and lacks downward momentum. 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 a further advance toward 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 0.9620 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 0.9570. The pivot point is at 0.9655.
Resistance levels: 0.9735, 0.9765, 0.9795
Support levels: 0.9620, 0.9570, 0.9530