USD/CHF is expected to trade with bullish bias. The pair is trading above its 20-period and 50-period moving averages while the 20-period moving average is turning up. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.9915 is playing a key support role, which should limit the downside potential. The US dollar remained firm with no weakness in sight as expectations of the Federal Reserve raising interest rates in December grew. In fact, St. Louis Federal Reserve President James Bullard pointed out that an interest rate hike in December is most likely. Besides, Chicago Federal Reserve President Charles Evans said the central bank could increase rates three times by the end of 2017.
As long as this key level is not broken, look for a further upside toward 0.9970. A break above this level would call for a further advance toward 1.0000.
Resistance levels: 0.9970, 1.0000, 1.0075
Support levels: 0.9895, 0.9870, 0.9850
The material has been provided by InstaForex Company – www.instaforex.com
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