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Technical analysis of USD/CHF for May 09, 2016

USDCHFM30.png

USD/CHF is expected to continue its further upside movement. The pair stands firmly above its key horizontal support at 0.9655 and is challenging its nearest resistance at 0.9765 at first. The relative strength index stays above its neutrality area at 50, and both rising 20-period and 50-period moving averages play support roles. Therefore, as long as 0.9655 is not broken, look for further upsides to 0.9765 and 0.9795 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 0.9765 and the second one, at 0.9795. In the alternative scenario, short positions are recommended with the first target at 0.9620 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 0.9570. The pivot point is at 0.9655.

Resistance levels: 0.9765, 0.9795, 0.9845

Support levels: 0.9620, 0.9570, 0.9530

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