USD/CHF is expected to trade with a bullish bias above 0.9375. Currently trading at 0.9417, the pair is challenging its major support at 0.9375. As long as this threshold is not broken, the intraday outlook remains positive. As the momentum indicator RSI is turning up, and the 50-period MA still acts as a support. The pair is still moving towards higher highs and higher lows on an intraday basis, therefore, above 0.9375 look for a new bounce to 0.9505 and 0.9550 (highs reached on August 25) 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. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.9505 and the second target at 0.9550. In the alternative scenario, short positions are recommended with the first target at 0.9245 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 0.92. The pivot point is at 0.93.
Resistance levels: 0.9505 0.9550 0.96
Support levels: 0.9245 0.92 0.9160
The material has been provided by InstaForex Company – www.instaforex.com