FX.co ★ Technical analysis of USD/CHF for May 31, 2016

USD/CHF is under pressure. The pair stays below its key resistance at 0.9935 and looks for choppy price action with a bearish bias, as both the 20-period and 50-period moving averages are badly directed. Even though a technical rebound cannot be ruled out at the current stage, its extent should be limited. As long as 0.9935 holds on the upside, the intraday outlook stays negative with targets at 0.9870 and 0.9845 in extension.

Trading recommendation:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9870. A break of this target will move the pair further downwards to 0.9845. The pivot point stands at 0.9935. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9955 and the second one at 0.9990.

Resistance levels: 0.9955, 0.9990, 1.0010

Support levels: 0.9870, 0.9845, 0.9805