USD/CHF is expected to trade in higher range . The pair broke above its key resistance at 0.9715 yesterday, which opened the path towards 0.9845. Technically, the key moving averages are turning up, and the intraday RSI is positive above the neutrality level at 50. Besides, the pair is more likely to be forming a «flag» bullish continuation pattern. In these perspectives, as long as 0.9745 is support, expect a continuation of the rebound towards 0.9845 after a pause.
The daily chart is still negative-biased as the MACD and stochastics are bearish, although the latter one is at oversold levels. Five-day moving average is below 15-day moving average and is declining.
The 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 0.9810 and the second target at 0.9845. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9710. A break of this target would push the pair further downwards, and one may expect the second target at 0.9665. The pivot point is at 0.9745.
Resistance levels: 0.9810 0.9845 0.9875
Support levels: 0.9715 0.9665 0.9615
The material has been provided by InstaForex Company – www.instaforex.com