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Technical analysis of USD/CHF for April 05, 2016

USDCHFM30.png

USD/CHF is expected to trade in a lower range as the key resistance is set at 0.9625. The pair remains under pressure below its resistance at 0.9625 since March 31, and is more likely to test the next support at 0.9555 in the coming trading hours. The relative strength index is mixed with a bearish bias. Furthermore, the process of lower highs and lows remains intact, which should confirm a negative outlook. In this prospect, as long as 0.9625 is not surpassed, the pair is expected to post further downsides to 0.9555 and 0.9525 in extension.

Trading Recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9555. A break of this target will move the pair further downwards to 0.9525. The pivot point stands at 0.9625. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9650 and the second target at 0.9675.

Resistance levels: 0.9650, 0.9675, 0.9715

Support levels: 0.9555, 0.9525 , 0.9465

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