USD/CHF is expected to rebound. The pair broke above its 20-period and 50-period moving averages. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. Additionally, a support base at 1.0075 has formed and should limit the downside potential.
The U.S. Commerce Department reported that retail sales increased 0.6% on month in December (vs. +0.7% expected). The Labor Department announced that the producer-price index excluding food and energy gained 0.2% on month in December (vs. +0.1% expected). The University of Michigan consumer sentiment index (preliminary reading) dipped to 98.1 in January (vs. 98.5 expected) from 98.2 in December.
As long as this key level is not broken, look for a further upside toward 1.0130 and even 1.0155 in extension.
Resistance levels: 1.0130, 1.0155, 1.0180
Support levels: 1.0040, 1.000, 0.9975
The material has been provided by InstaForex Company - www.instaforex.com