USD/CHF is expected to trade in a bullish bias above 0.9940. The pair stands firmly above its nearest support at 0.9940, and is likely to post a new rebound in the coming trading hours. The relative strength index is mixed to bullish. Besides, the prices are now above its intraday key moving averages. Hence, even though a continuation of the consolidation cannot be ruled out, its extent should be limited before a new bounce to 1.0010 and 1.0040 in extension.
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. Therefore, long positions are recommended with the first target at 1.0010 and the second one at 1.0040. In the alternative scenario, short positions are recommended with the first target at 0.99 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 0.9875. The pivot point is at 0.9940.
Resistance levels: 1.0010, 1.0040, 1.0080
Support levels: 0.99, 0.9875, 0.9850
The material has been provided by InstaForex Company - www.instaforex.com