USD/CHF is expected to trade with a bullish bias. The pair bounced off its strong support at 0.9900 after having tested for at least 3 times. The relative strength index is bullish and calls for further advance. Furthermore, a bullish cross between the 20-period and 50-period moving averages has been identified (a positive signal). Hence, as long as 0.9940 is not broken, look for a further advance to 1.0010 and 1.0040 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 1.0010 and the second one at 1.0040. In the alternative scenario, short positions are recommended with the first target at 0.99 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 0.9875. The pivot point is at 0.9940.
Resistance levels: 1.0010, 1.0040, 1.0080
Support levels: 0.99, 0.9875, 0.9850
