USD/CHF is expected to trade with bullish bias. The pair recovered from yesterday's losses and posted a strong technical rebound. The upside momentum is strong, as the relative strength index is turning up now and calls for a new bounce. Besides, a strong support base around 1.0000 has been formed and it should limit any downward attempts.
On the economic data front, GDP annualized remained unchanged QoQ in 4Q at +1.9% (estimated +2.1%). Separately, personal consumption advanced 3% in 4Q (forecasted +2.6%) from an increase of 2.5% in the previous quarter. In other news, wholesale inventories decreased 0.1% MoM in January in a preliminary estimate (estimated +0.4%) from an improvement of 0.9% in December. Furthermore, Chicago PMI grew to 57.4 in February (forecasted 53.5) compared with 50.3 in the previous month. Finally, Conference Board Consumer Confidence increased in February to 114.8 (estimated 111.0) well above 111.8 in the previous month.
In these perspectives, as long as 1.0050 holds on the downside, look for a new rise to 1.0115 and even to 1.0135 in extension.
Resistance levels: 1.0115, 1.0135, and 1.0180
Support levels: 1.0035, 1.0020, and 1.000
The material has been provided by InstaForex Company - www.instaforex.com