USD/CHF is expected to trade with a bullish bias and continue its upside movement. The technical picture of the pair is bullish above its rising 20-period and 50-period moving averages, which act as support and maintain the upside bias. Additionally 0.9870 (Oct 12 bottom) is playing a key support role, which should limit the downside potential. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. The Fed said in the minutes, "The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives. Several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded about as expected, it was noted that a reasonable argument could be made either for an increase at this meeting or for waiting for some additional information on the labor market and inflation."
As long as the key level at 0.9870 is not broken, look for a further upside toward 0.9910 and even 0.9945 in extension.
Resistance levels: 0.9910, 0.9945, 0.9985
Support levels: 0.9810, 0.9790, 0.9765
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