USD/CHF is expected to continue its upside movement. The pair recorded a succession of higher tops and higher bottoms since May 8 and is holding on the upside. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.
The U.S. dollar strengthened across the board as investors shifted focus back to higher U.S. interest rates. Federal Reserve Bank of Kansas City President Esther George pointed out that the U.S. economy is on track to grow at "a slightly above-trend rate", and that the U.S. central bank should press forward with interest-rate increases to prevent overheating in the economy.
As long as 1.0035 holds on the downside, look for a further advance toward 1.0095 and even 1.0125 in extension.
Resistance levels: 1.0005, 1.0025, and 1.0075
Support levels: 0.9930, 0.9905, and 0.9870
