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Technical analysis of USD/CHF for May 20, 2016

USDCHFM30.png

USD/CHF is expected to trade in higher range as bias remains bullish. The intraday technical outlook is still positive, as the pair remains supported by its rising 20-period and 50-period moving averages, and is likely to challenge its nearest resistance at 0.9945 in sight. The relative strength index is above its neutrality area at 50. Last but not least, the process of higher highs and lows remains intact on the prices. In these perspectives, as long as 0.9860 is not broken, the price is likely to advance to 0.9945 and 0.9980 in extension.

Trading recommendation:

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 0.9945 and the second one at 0.9980. In the alternative scenario, short positions are recommended with the first target at 0.9805 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 0.9775. The pivot point is at 0.9860.

Resistance levels: 0.9945, 0.9980, 1.0125

Support levels: 0.9805, 0.9775, 0.9750

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