USD/CHF is expected to trade with the bearish outlook. The pair posted a technical rebound, and broke above its 20-period and 50-period moving averages. Nevertheless, it is still trading below its key resistance at 1.0100. On the economic data front, new home sales increased to 555k in January (estimated 571k) from 535k in the previous month. In other news, the University of Michigan sentiment index improved to 96.3 in a final estimation in February (forecasted 96) compared to 95.7 in the previous estimate and 98.5 in January.
As long as 1.0100 is not surpassed, a further drop to 1.0040 is expected. A break below this level would trigger a new drop to 1.0015.
Resistance levels: 1.0115, 1.0140, and 1.0160
Support levels: 1.0040, 1.0015, and 0.9975
