USD/CHF is expected to trade with a bullish bias. The pair holds on the upside and is now challenging its nearest resistance at 0.9790. Meanwhile, a support base at 0.9790 has been formed, and the downside potential should be limited by this level. The rising 50-period moving average is playing a support role and maintains a bullish bias. In addition, the relative strength index is above its neutrality area at 50. On Tuesday, U.S. indices closed lower weighted down by shares in the Utilities, Consumer Durables & Apparel and Retailing sectors. The Dow Jones Industrial Average dropped 49 points (0.2%) to 18454, the S&P 500 slipped 4 points (0.2%) to 2176, and the Nasdaq Composite dipped 9 points (0.2%) to 5223. U.S. government bonds were relatively flat. The benchmark 10-year U.S. Treasury yield rose to 1.570% from 1.566% in the previous session.
Hence, as long as 0.9790 holds as a support, look for further advance to 0.9900 and even to 0.9945 as likely.
Resistance levels: 0.9900, 0.9945, 0.9975
Support levels: 0.9760, 0.9735, 0.9685
The material has been provided by InstaForex Company – www.instaforex.com