The pair moved as predicted in yesterday's analysis and our take profit target has been hit. Today, USD/CHF is expected to trade with a bullish outlook. The pair recorded a secessions of higher tops and higher bottoms and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. The rising 50-period moving average is playing a support role and maintains the upside bias. In addition, 0.9605 is playing a key support role, which should limit the downside potential.
A trading volume stayed on the low side as stock investors became cautious ahead of events later in the week including the U.K. elections, the European Central Bank meeting and former FBI director James Comey's congressional testimony. On the other hand, receiving bids were safe haven assets including U.S. government bonds, gold, Japanese yen, and the Swiss franc.
As long as 0.9605 holds on the downside, look for a further upside toward 0.9685 and even 0.9720 in extension.
Graph Explanation: The black line shows the pivot point, present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines shows the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: Buy at dips, Stop Loss: 0.9605, Take Profit: 0.9685
Resistance levels: 0.9685, 0.9720, and 0.9750
Support levels: 0.9575, 0.9535, and 0.9500
