Technical Analysis of USD/CHF for June 03, 2016
USD/CHF is likely to trade with a bullish outlook. The pair bounced off its major horizontal support at 0.9865 and is expected to post further advance. Additionally, the 20-period moving average has crossed above the 50-period one, calling for further upsides as well. As long as 0.9865 is not broken, we are positive and expect a new bounce to 0.99235 at first.
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 0.9935 and the second one at 0.9975. In the alternative scenario, short positions are recommended with the first target at 0.9830 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 0.98. The pivot point is at 0.9865.
Resistance levels: 0.9935, 0.9975, 1.0010
Support levels: 0.9830, 0.9800, 0.9740