USD/CHF is expected to trade with bullish bias above 0.9690. The pair is trading around its 20-period and 50-period moving averages, which are flat and do not show clear directions. Nevertheless, the relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.9690 (Nov 2 and 3 bottoms) represents a significant key support level, which should limit the downside potential.
On the economic data front, the U.S. Labor Department reported that initial jobless claims amounted to 265,000 in the week ended October 29, higher than 256,000 expected. The ISM Non-manufacturing PMI declined to 54.8 in October (vs. 56.0 expected) from 57.1 in September, while the Markit US services PMI in October improved to 54.8 from 52.3 in September. Factory orders grew 0.3% on month in September (vs. +0.2% expected, +0.4% in August), while durable goods orders fell 0.3% on month (vs. -0.1% expected, +0.3% in August).
As long as this key level is not broken, look for a further upside toward 0.9785 and even 0.9820 in extension.
Resistance levels: 0.9785, 0.9820, 0.9870
Support levels: 0.9660, 0.9630, 0.9600
The material has been provided by InstaForex Company - www.instaforex.comFrom www.instaforex.com http://ift.tt/2f84FN0
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