Technical Analysis of USD/CHF for May 13, 2016
USD/CHF is expected to trade with a bullish bias above 0.9680. The pair is pulling back now after yesterday's rallies. A strong support base around 1.4430 has formed and should limit any downward attempts. Meanwhile, the 20-period moving average stays above the 50-period one. The relative strength index lacks strong downward momentum. Hence, as long as 0.9680 is not broken, look for a new rise to 0.9735 and 0.9765 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 0.9735 and the second one, at 0.9765. In the alternative scenario, short positions are recommended with the first target at 0.9655 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 0.9620. The pivot point is at 0.9680.
Resistance levels: 0.9735, 0.9765, 0.9795
Support levels: 0.9655, 0.9620, 0.9570