USD/CHF is expected to extend its upside movement. The pair broke above its previous key resistance at 1.0050, which becomes a key support now, and accelerated on the upside. The upward momentum is further reinforced by its rising 20-period and 50-period moving averages. The relative strength index is bullish above its neutrality level at 50 and lacks downward momentum.
U.S. economic data released were robust. The Commerce Department reported that housing starts increased 11.3% on month to seasonally adjusted annual rate of 1.23 million (vs. +10.1% to 1.20 million expected). The Labor Department said initial jobless claims amounted to 234,000 in the week ended January 14 (vs. 252,000 expected).
As long as the key level at 1.0055 is support, look for a further upside toward 1.0120 and 1.0135 in extension.
Resistance levels: 1.0120, 1.0135, 1.0180
Support levels: 1.0030, 1.0010, 0.9975
The material has been provided by InstaForex Company - www.instaforex.com