USD/CHF is expected to prevail its upside movement. The pair accelerated on the upside after it broke above a descending trend line and is likely to challenge the nearest resistance at 0.9855. The relative strength index is bullish above its neutrality area at 50 and shows upside momentum. The rising 50-period moving average is playing a support role. On the economic front, in the US, retail sales grew 0.6% month-on-month in June (vs. +0.1% expected), CPI rose 0.2% month-on-month (vs. +0.3% expected), and 1.0% year-on-year (vs. +1.1% expected) in June, industrial production increased 0.6% month-on-month in June (vs. +0.3% expected), the New York Fed’s Empire Manufacturing Index posted 0.55 in July (vs. 5.00 expected), and the University of Michigan Consumer Sentiment Index was at 89.5 in July (vs. 93.5 expected).
As long as 0.9780 is support, look for further upside movement towards 0.9875 and even 0.99 in extension.
Resistance levels: 0.9875, 0.9900, 0.9945
Support levels: 0.9760, 0.9735, 0.9700
The material has been provided by InstaForex Company – www.instaforex.com