USD/CHF is expected to continue its rebound. The pair remains supported by its rising 20-period moving average. The 50-period moving average is also turning up, and should play a support role. Furthermore, the relative strength index stands firmly above its neutrality area at 50, and is well directed. In this case, as long as 0.9950 (our trailing stop loss) is not broken, look for a new advance to 1.0040 and 1.0080 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. As long as the price holds above its pivot point, it is recommended to open long positions with the first target at 1.0040 and the second target at 1.0080. In the alternative scenario, it is recommended to open short positions with the first target at 0.9915, 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 0.9870. The pivot point is at 0.9950.
Resistance levels: 1.0040, 1.0080, 1.0110
Support levels: 0.9915, 0.9870, 0.9810.
