FX.co ★ Technical analysis of USD/CHF for October 06, 2015

USD/CHF is expected to make further advance. Technically, the pair recovered its previous losses and gained its bullish dynamic. The intraday RSI indicator has confirmed the positive outlook, as it broke above a neutrality area of 50 with strong upward momentum. During upcoming hours, the pair is more likely to challenge its nearest resistance at 0.9720, representing the horizontal level and high, which was hit on October 2. Only an upside breakout of that level would open the way to 0.9795 and even to 0.9825.

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, long positions are recommended with the first target at 0.9795 and the second target at 0.9825. In the alternative scenario, short positions are recommended with the first target at 0.9680 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 0.9635. The pivot point is at 0.9720.

Resistance levels: 0.9795 0.9825 0.9860

Support levels: 0.9680 0.9635 0.9580