USD/CHF is expected to trade with a bullish bias above 0.9735. The pair remains on the upside and is now challenging its nearest resistance at 0.9845. Meanwhile, a support base at 0.9735 has formed, and the downside potential should be limited by this level. In addition, the relative strength index is above its neutrality area at 50, and lacks downward momentum. On Monday, U.S. indices closed higher boosted by shares in the financial sectors. The Dow Jones Industrial Average rose 107 points (0.6%) to 18502, the S&P 500 gained 11 points (0.5%) to 2180, while the Nasdaq Composite added 13 points (0.3%) to 5232.
On the economic data front, personal income in July grew by 0.4% in line with estimates, from an increase of 0.3% in the previous month (revised from +0.2%). On the other hand, personal spending improved by 0.3% in July in line with estimates, from a rise of 0.5% in June (revised from +0.4). In other news, the Dallas federal manufacturing activity index fell to -6.2 in August (estimated -3.9) from -1.3 in prior month.
Hence, as long as 0.9735 holds as a support, look for further advance to 0.9845 and even to 0.9900 as likely.
Resistance levels: 0.9845, 0.99, 0.9950
Support levels: 0.96850.9650, 0.9620
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/CHF is expected to trade with a bullish bias above 0.9735. The pair remains on the upside and is now challenging its nearest resistance at 0.9845. Meanwhile, a support base at 0.9735 has formed, and the downside potential should be limited by this level. In addition, the relative strength index is above its neutrality area at 50, and lacks downward momentum. On Monday, U.S. indices closed higher boosted by shares in the financial sectors. The Dow Jones Industrial Average rose 107 points (0.6%) to 18502, the S&P 500 gained 11 points (0.5%) to 2180, while the Nasdaq Composite added 13 points (0.3%) to 5232.
On the economic data front, personal income in July grew by 0.4% in line with estimates, from an increase of 0.3% in the previous month (revised from +0.2%). On the other hand, personal spending improved by 0.3% in July in line with estimates, from a rise of 0.5% in June (revised from +0.4). In other news, the Dallas federal manufacturing activity index fell to -6.2 in August (estimated -3.9) from -1.3 in prior month.
Hence, as long as 0.9735 holds as a support, look for further advance to 0.9845 and even to 0.9900 as likely.
Resistance levels: 0.9845, 0.99, 0.9950
Support levels: 0.96850.9650, 0.9620
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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