USD/CHF is under pressure. The pair recorded a succession of lower tops and lower bottoms since July 27, which confirms the negative view. The declining 50-period moving average is playing a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. The U.S. Commerce Department reported that GDP grew at an annualized rate of 1.2% quarter on quarter in Q2, well below the 2.6% advance economists surveyed by The Wall Street Journal had forecast. The soft GDP report dampened expectations that the U.S. Federal Reserve would raise interest rates soon. As a result, U.S. government bonds strengthened, the U.S. dollar tumbled, and prices for precious metals increased.
As long as 0.9765 holds on the upside, look for further drop toward 0.9635. A break below this level would call for further decline toward 0.9590. Only a break above 0.9765 would make the outlook positive with up targets at 0.9825 and 0.9870 in extension.
Resistance levels: 0.9825, 0.9875, 0.9920
Support levels: 0.9635, 0.9590, 0.9535
The material has been provided by InstaForex Company - www.instaforex.com