USD/CHF is expected to trade with bearish bias as key resistance at 0.9785. The pair is posting some rebound and just broke above its 20-period and 50-period moving averages. Nevertheless, 0.9785 represents a significant key resistance level, which should limit the upside potential. Even though a continuation of technical rebound cannot be ruled out, its extent should be limited.On the economic front, the U.S. Commerce Department reported that July retail sales were little changed in July as compared to June (vs. +0.4% expected). Excluding cars, sales declined 0.3% (vs. +0.1% expected). Another report showed that U.S. producer-price index (PPI) dropped 0.4% on month in July (vs. +0.1% expected), the biggest decline in almost a year.

As long as 0.9785 is not broken, the pair is likely to return to 0.9725. A break below this level would open the way to further weakness toward the next support at 0.9705.

Resistance levels: 0.9805, 0.9845, 0.9905

Support levels: 0.9725, 0.9705, 0.9690