USD/CHF is expected to trade with a bullish bias. The pair has formed an intraday «V-bottom» pattern after hitting its key support at 0.9545. The bullish dynamic is strong, as the intraday RSI jumped above a descending trendline, and is heading upward now. Last but not least, the 20-period intraday MA is about to cross above the 50-period one. Given these perspectives, as long as 0.9600 holds on the downside, look for further advance to 0.9690 and 0.9720 (July 30’s high) in extension.
The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling but stochastics are turning bullish at oversold levels.
he pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.9690 and the second target at 0.9720. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9570. A break of this target would push the pair further downwards, and one may expect the second target at 0.9545. The pivot point is at 0.96.
Resistance levels: 0.9690 0.9720 0.9765
Support levels: 0.9570 0.9545 0.95
The material has been provided by InstaForex Company – www.instaforex.com