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Technical analysis of USD/CHF for January 08, 2016

USDCHFM30.png

USD/CHF is expected to trade in a higher range as the pair is rebounding. The pair is moving sideways above its key support at 0.9920. Meanwhile, the relative strength index is mixed to bullish. Further upside is therefore expected with the next horizontal resistance and overlap set at 1.0040 at first. A break above this level would call for further advance towards 1.0080.

Trading recommendations:

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, it is recommended to open long positions with the first target at 1.0040 and the second target at 1.0080. In the alternative scenario, it is recommended to open short positions with the first target at 0.9890, 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 0.98300.9855. The pivot point is at 0.9920.

Resistance levels: 1.0040, 1.0080, 1.0110

Support levels: 0.9890, 0.9855, 0.98

The material has been provided by InstaForex Company - www.instaforex.com