USD/CHF is expected to trade in a higher range as the bias remains bullish. The pair is posting some consolidations after the downside breakout of its 50-period moving average. Nevertheless, a support base at 0.9700 has been formed and should allow for a stabilization. In addition, the relative strength index lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. On the economic data front, the U.S. Commerce Department reported that retail sales declined 0.3% on month in August (vs. -0.1% expected, +0.1% in July). The Federal Reserve announced that industrial production fell 0.4% on month in August (vs. -0.2% expected, +0.6% in July). Besides, the Labor Department said initial jobless claims added 1,000 to 260,000 for the week ended September 10 (vs. 265,000 expected).
Hence, as long as 0.9700 is not broken, expect a new rise to 0.9740, if breakout, look for further advance to 0.9765 as possible.
Resistance levels: 0.9740, 0.9765, 0.9810
Support levels: 0.9690, 0.9675, 0.9690
The material has been provided by InstaForex Company - www.instaforex.com