USD/CHF is expected to continue its upside movement. The pair recorded higher tops and higher bottoms since March 28, which confirmed a positive outlook. The upward momentum is further reinforced by the rising 50-period moving average. The relative strength index lacks downward momentum.
The US dollar was further buoyed by the hawkish tone from several Federal Reserve officials. Chicago Fed President Charles Evans, one of the most consistent supporters of low interest rates within the Federal Reserve, said he supports one or two more rates will rise this year. San Francisco Fed President John Williams said he still expects just two more rate moves this year, adding, "I would not rule out more than three increases total for this year." And Boston Fed President Eric Rosengren pointed out, "The base case would be four tightenings, reflecting the strength of the economy."
To conclude, as long as 0.9930 is not broken, a new rise to 1.0015 and even to 1.0055 seems more likely to occur.
Resistance levels: 1.0015, 1.0055, and 1.0075
Support levels: 0.9905, 0.9880, and 0.9845
The material has been provided by InstaForex Company - www.instaforex.com
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