USD/CHF is expected to trade with bullish bias. The pair seems to be forming a "broadening formation" pattern, and is expected to challenge its next resistance at 1.0195 in the coming trading hours. The relative strength index is mixed to bullish above its neutrality area at 50.
The US dollar strengthened as higher oil prices enhanced inflation expectations and US bond yields. In fact, the chance of a rate increase is now 94%, according to the Fed's fund futures tracked by CME. The ICE US Dollar Index rose 0.6% to 101.55.
Therefore, as long as 1.0120 is not broken, expect a new rise to 1.070 and 1.0195 in extension.
Resistance levels: 1.0170, 1.0190, 1.0220
Support levels: 1.0100, 1.0075, 1.0040
