USD/CHF is expected to trade in a lower range as the key resistance at 1.0010. The pair is consolidating and is under pressure below the key resistance at 1.0010, which should limit the upside potential. The relative strength index is bearish, calling for a further drop. Even though the continuation of technical rebound cannot be ruled out, its extent should be limited.
On the economic data front, the University of Michigan consumer sentiment (preliminary reading) posted 97.6 in March (vs. 97.5 expected, the final reading of 96.3 in February). The 5-10 year inflation expectation component of the University of Michigan data series was at +2.2%, the lowest level on record.
To sum up, as long as 1.0010 is not surpassed, look for a return to 0.9920. A break below this level would call for a new drop to 0.9900.
Resistance levels: 1.0045, 1.0070, and 1.0095
Support levels: 0.9920, 0.9900, and 0.9865
The material has been provided by InstaForex Company – www.instaforex.com