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Technical analysis of USD/CHF for May 12, 2016

USDCHFM30.png

USD/CHF is expected to trade with a bullish bias as the key support stands at 0.9680. The pair stands firmly above its horizontal level at 0.9680, and is likely to post further advance to 0.9765 at first. Although a continuation of the consolidation cannot be ruled out, its extent should be limited by 0.9680. The relative strength index lacks downward momentum .

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 0.9655 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 0.9620. The pivot point is at 0.9680.

Resistance levels: 0.9765, 0.9795, 0.9850

Support levels: 0.9655, 0.9620, 0.9570

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