USD/CHF is expected to bounce back. The pair is holding on the upside, and is likely to challenge the horizontal resistance at 0.9740 in sight. Furthermore, the rising 50-period moving average is playing a support role, and should push the prices higher. A support base at 0.9665 has formed and the downside attempts should be limited.On the economic data front, initial jobless claims fell to 259k in week ended Sept. 3rd (estimated 265k) from 263k in the previous week. Continuing claims dropped to 2.14M in week ended Aug. 27th (forecasted 2.15M) from 2.15M in prior week (revised from 2.16M).
Besides, the relative strength index is still above its neutrality area at 50. Hence, as long as 0.9665 holds on the downside, we are positive and expect a new bounce to 0.9740 and 0.9770 in extension.
Resistance levels: 0.9740, 0.9770, 0.9810
Support levels: 0.9645, 0.9610, 0.9525
The material has been provided by InstaForex Company – www.instaforex.com
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