05.01.201616:18 Forex Analysis & Reviews: Technical analysis of USD/CHF for January 05, 2016

Long-term review

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USD/CHF is expected to trade in a higher range as bias remains bullish. The pair is clearly in an uptrend, and it is also supported by a ST bullish trend line. The relative strength index is mixed to bullish above its neutrality area at 50. The recent upside breakout of 1.0000 (a key psychological level and the high of December 31) should confirm a positive view, and call for a new rise to 1.0120 and 1.0085 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 1.0120 and the second target at 1.0145. In the alternative scenario, it is recommended to open short positions with the first target at 0.9970, 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 0.9925. The pivot point is at 1.00.

Resistance levels: 1.0120, 1.0145, 1.0185

Support levels: 0.9970, 0.9925, 0.9875

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