Technical Analysis of USD/CHF for May 19, 2016
USD/CHF is expected to trade in a higher range as the pair stands firmly above its horizontal support at 0.9805 and is expected to challenge its nearest resistance at 0.9890 in sight. Besides, the price is above its 20-period and 50-period moving averages, which act as support. Meanwhile, the relative strength index is bullish above its neutrality area at 50, and calls for further upside. In this case, if the price moves above 0.9805, an advance to 0.9920 and 0.9945 is likely 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 0.9920 and the second one, at 0.9945. In the alternative scenario, short positions are recommended with the first target at 0.9775 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 0.9750. The pivot point is at 0.9805.
Resistance levels: 0.9920, 0.9945, 0.9985
Support levels: 0.9775, 0.9750, 0.97