USD/CHF is expected to trade with bullish bias above 1.0020, although the pair broke below the 20-period moving average, the price is still trading above its rising 50-period moving average, which play a support role and maintains the upside bias. The pair is also supported by a bullish trend line since April 3. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
US stocks erased gains to end in the red. In the early part of the session, stocks were broadly higher after payroll firm Automatic Data Processing Inc. (ADP) reported that the US private sector added 263,000 jobs in March, much higher than a plus 180,000 expected. Also, the gains in oil prices helped.
However, stocks reversed course to the downside upon the release of the latest Federal Reserve monetary policy meeting minutes, which revealed that officials intended to begin reducing the central bank's balance sheet later this year. Adding to the pressure on stocks was a press report that House Speaker Paul Ryan said changes to taxes would take longer than the health-care overhaul would.
Meanwhile, the Institute for Supply Management (ISM) said its non-manufacturing index fell to 55.2 in March (vs. 57 expected) from 57.6 in February.
Therefore, above 1.0020, look for a new advance to 1.0070 and even to 1.0090 in extension.
Resistance levels: 1.0055, 1.0090, and 1.0125
Support levels: 0.9950, 0.9910, and 0.9885
The material has been provided by InstaForex Company - www.instaforex.comfrom www.instaforex.com
