USD/CHF is expected to prevail its upside movement. The pair recorded a succession of higher tops and higher bottoms since Aug 2, and is holding on the upside. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum. he ADP National Employment Report showed that U.S. private employers added 179,000 jobs in July, better than +170,000 jobs expected. Besides, the Markit U.S. Services PMI posted a final reading of 51.4 in July (vs. 50.9 in a preliminary estimate and 51.4 in June), and the Composite PMI was at 51.8 (vs. 51.5 in a preliminary estimate and 51.2 in June).
As long as 0.9670 is support, look for further upside toward 0.9765 and 0.9825 in extension. Below 0.9670, look for further downside with 0.9630 and 0.9590 as targets.
Resistance levels: 0.9765, 0.9825, 0.9875
Support levels: 0.9630, 0.9590, 0.9535
