USD/CHF is expected to trade with bullish bias. The pair is rebounding and broke above its 20-period moving average with strong momentum. The relative strength index is turning up and broke above its neutrality level at 50. Additionally, 1.000 represents a significant key support level, which should limit the downside potential.
The U.S. dollar remained firm although its strength was dampened by a worse-than-expected University of Michigan consumer sentiment index for February (posted at 95.7 vs. 98.0 expected, 98.5 in January). While U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe discussed their trade relationship in a joint press conference, that did not offer much new information about how Trump will approach foreign-exchange. The dollar was still buoyed by Trump's tax-plan comments given on Thursday.
As long as this key level is not broken, look for a further upside toward 1.0060 and even 1.0095 in extension.
Resistance levels: 1.060, 1.0095, and 1.0210
Support levels: 0.9985, 0.9965, and 0.9930
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