USD/CHF is expected to trade with a bearish bias as key resistance is set at 0.9645. The pair remains under pressure below its nearest resistance at 0.9645 (Aug 17 top), which should limit the upward potential. The 20-period moving average is turning down and is likely to cross below the 50-period one in sight. Besides, the relative strength index lacks upward momentum. The minutes from the U.S. Federal Reserve’s July monetary policy meeting showed that policymakers were generally upbeat about the country’s economic outlook. However, there was little accord among them on the timing of raising interest rates, although some found it necessary to tighten policy soon. To conclude, as long as the key resistance at 0.9645 is not broken, the intraday outlook remains negative with a down target at 0.9555. A break below this level would open the way to further weakness toward the next support at 0.9520. As long as 0.9785 is not broken, the pair is likely to return to 0.9725. A break below this level would open the way to further weakness toward the next support at 0.9705.
Resistance levels: 0.9680, 0.9705, 0.9760
Support levels: 0.9555, 0.9520, 0.9475
The material has been provided by InstaForex Company – www.instaforex.com
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