USD/CHF is expected to post some further upside gain. The pair is supported by a bullish trend line since August 23 and is likely to challenge the nearest resistance at 0.9685 in sight. The upward momentum is further reinforced by its rising 50-period moving average, which acts as a support role and maintains the upside bias. Wednesday, U.S. stock indexes declined, weighed down by health-care shares. Energy and materials stocks were also lower as oil prices dropped. The Dow Jones Industrial Average fell 65 points (0.4%) to 18481, the S&P 500 shed 11 points (0.5%) to 2175, while the Nasdaq Composite lost 42 points (0.8%) to close at 5217. The U.S. dollar posted a rebound as bears took profits ahead of Yellen’s speech at the monetary-policy symposium in Jackson Hole. In conclusion, as long as 0.9620 is support, look for further advance to 0.9685 and 0.9710 in extension. Alternatively, below 0.9620, expect a return to 0.9620 and 0.9590 as targets.
As long as 0.9590 is support, look for further advance to 0.9680 and even to 0.9710 in extension.
Resistance levels: 0.9685, 0.9710, 0.9750
Support levels: 0.9620, 0.9590, 0.9535
The material has been provided by InstaForex Company – www.instaforex.com