USD/CHF is expected to trade with a bearish bias. The pair continues its consolidation below its key resistance at 0.9715, which should limit the upside potential. The declining 50-period moving average also suggests that the pair still has potential for further downside. The relative strength index is below its neutrality level at 50. As investors kept their expectations that the U.S. Federal Reserve would delay raising interest rates in view of the weaker-than-expected second quarter GDP growth, the U.S. dollar sank to the lowest level since the Brexit vote with the ICE U.S. Dollar Index shedding 0.7% to 95.03. EUR/USD gained 0.6% to a six-week high of 1.1225.
As long as 0.9715 holds on the upside, the pair is likely to return to its previous low at 0.9630. A break below 0.9630 would trigger a drop toward 0.9590. Only a break above 0.9715 would turn the outlook to positive with up targets at 0.9765 and 0.9825.
Resistance levels: 0.9765, 0.9825, 0.9875
Support levels: 0.9630, 0.9590, 0.9535
The material has been provided by InstaForex Company - www.instaforex.com