USD/CHF is expected to trade with bullish bias as the upside movement is supported by a rising trend line. The pair is supported by a bullish trend line since March 31 which confirms a positive outlook. The downside potential should be limited by the key support at 0.9990 (the low of March 31). Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Regarding economic data, the US Institute for Supply Management posted its manufacturing PMI at 57.2 for March, lower than 57.5 expected and 57.7 in February. The Commerce Department said construction spending grew 0.8% on month in February (vs. +1.0% expected, -0.4% in January).
Hence, above 0.9990, expect a further rise to 1.0055. A break above this level would call for a new advance to 1.0090.
Resistance levels: 1.0055, 1.0090, and 1.0125
Support levels: 0.9950, 0.9910, and 0.9885
