USD/CHF is expected to trade in a higher range. The pair remains bullish above the key support at 0.9745, and is likely to post a new rebound in coming trading hours. The current consolidation should be very limited, as the 20- and 50-period intraday MAs are still on the upside, and the intraday RSI lacks downward momentum. In this case, as long as 0.9745 holds the downside, look for 0.9895 and 0.9940 in extension.
The daily chart is positive-biased as the MACD and stochastics are bullish, although the latter one is at overbought levels. Five-day moving average is above 15-day moving average and is rising.
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 0.9895 and the second target at 0.9940. 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: 0.9895 0.9940 0.9985
Support levels: 0.9710 0.9665 0.9615
The material has been provided by InstaForex Company – www.instaforex.com