USD/CHF is expected to trade with bullish bias. The pair broke below its 50-period moving average and is holding on the downside. The 20-period moving average crossed above the 50-period one and is playing a support role. Additionally, 0.9815 represents a significant key resistance level, which should limit the upside potential. The relative strength index is above its neutrality area at 50 and lacks upward momentum.The benchmark 10-year U.S. Treasury yield dipped to 1.698% from 1.701% Friday. Nymex crude bounced 0.6% from a one-month low to $43.30 a barrel, though it touched $44.15 earlier in the session. Gold gained 0.2% to $1313 an ounce and silver posted a powerful rebound of 2.0% to $19.14 an ounce.
The U.S. dollar softened from a one-month high registered last Friday as traders repositioned ahead of this week's central bank monetary policy meetings in the U.S. and Japan.
As long as 0.9815 is resistance, look for further downside toward 0.9755. A break below this level would call for further down movement toward 0.9735.
Resistance levels: 0.9840, 0.9865, 0.9910
Support levels: 0.9755, 0.9735, 0.9710
The material has been provided by InstaForex Company - www.instaforex.com