USD/CHF is expected to trade with a bullish bias above 0.9825. The technical picture remains positive above its key support at 0.9825, which should limit downward attempts. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. On the economic front, the US Labor Department reported that initial jobless claims declined slightly to 253,000 in week ended July 16 (vs. 265,000 expected) from 254,000 in the previous week. The National Association of Realtors said existing home sales gained 1.1% month-on-month to an annual rate of 5.57 million units in June (vs. 5.48 million units expected), the highest level in 9-1/2 years.
As long as 0.9825 is not broken, further advance is expected with the horizontal resistance at 0.9900. A break above this level would open the way to further upside toward the next resistance at 0.9920.
Resistance levels: 0.9900, 0.9920, 0.9975
Support levels: 0.9805, 0.9780, 0.9760
