USD/CHF is expected to trade with bullish bias and continue its rebound. The pair is trading above its ascending 20-period and 50-period moving averages, which play support roles and maintain upside bias. The relative strength index is bullish and calls for a further upside.
As expected, the U.S. Federal Reserve kept its key interest rate unchanged, citing moderate economic growth and solid job gains. In its policy statement, the Federal Open Market Committee said it expects to begin tapering its massive bond portfolio "relatively soon". At the same time, the statement also pointed out that inflation estimates "have declined and are running below 2%".
To conclude, as long as 0.9575 is not broken, look for a new advance to 0.9660 and even to 0.970 in extension.
Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 0.9575, Take Profit: 0.9660
Resistance levels: 0.9660, 0.9685, and 0.9710
Support levels: 0.9530, 0.9485, and 0.9440
The material has been provided by InstaForex Company - www.instaforex.com