USD/CHF is expected to trade with a bearish bias as the key resistance is set at 0.9820. The pair is now posting some consolidations. The relative strength index is above its neutrality area at 50, but lacks upward momentum. Last but not the least, 0.9820 (Sept 2 top) represents a significant resistance, and the upside potential should be limited by this level. On the economic data front, a change in nonfarm payrolls reached 151k in August (forecasted 180k) compared with 275k in prior month (revised from 255k). On the other hand, an unemployment rate in August remained unchanged at 4.9% (estimated 4.8%). In other news, factory orders improved to 1.9% in July (forecasted 2%) from a decrease of 1.8% a month earlier (revised from -1.5%). Finally, the trade balance improved with a deficit of $39.5B in July (estimated $41.5B) from a deficit of 44.7B in the previous month (revised from $44.5B).
In these perspectives, as long as 0.9820 is not broken up, the pair is likely to pull back to test its next support at 0.9760, if breakout, look for further decline to 0.9730.
Resistance levels: 0.9855, 0.9885, 0.9935
Support levels: 0.9760, 0.9730, 0.9685
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2cgI9Bu
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