Technical Analysis of USD/CHF for May 16, 2016
USD/CHF is expected to post some further gains. The pair bounced off its key support at 0.9700 and is likely to challenge its nearest resistance at 0.9795. The 50-period moving average acts well as support and should continue to push the prices higher. Last but not least, the relative strength index stands firmly above its neutrality area at 50 and calls for a new rise. To sum up, above 0.9700, further advance is expected to 0.9795 and 0.9850 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 0.9795 and the second one, at 0.9850. In the alternative scenario, short positions are recommended with the first target at 0.9660 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 0.9625. The pivot point is at 0.97.
Resistance levels: 0.9795, 0.9850, 0.9905
Support levels: 0.9660, 0.9625, 0.9570