USD/CHF is expected to trade with a bullish bias as the pair is moving upside. The pair stands firmly above its horizontal support at 0.9590 (Aug 23 bottom) and the downside potential should be limited by this level. The rising 50-period moving average is acting as support and maintains the bullish bias. The relative strength index is bullish above its neutrality area at 50 and lacks downward momentum. On the economic front, the U.S. Commerce Department reported that new home sales jumped 12.4% on month to a seasonally adjusted annual rate of 654,000 units in July (vs. -2.0% on month to 580,000 units expected). On Tuesday, U.S. stocks were modestly higher at close, lifted by technology and materials shares. The Dow Jones Industrial Average gained 17 points (0.1%) to 18547, the S&P 500 rose 4 points (0.2%) to 2186, while the Nasdaq Composite was up 15 points (0.3%) to 5260. The U.S. dollar was largely unchanged as traders were reluctant to place heavy directional bets on currencies ahead of Federal Reserve chairwoman Janet Yellen's speech at the monetary-policy symposium in Jackson Hole, Wyoming on Friday.
As long as 0.9590 is support, look for further advance to 0.9680 and even to 0.9710 in extension.
Resistance levels: 0.9650, 0.9680, 0.9705
Support levels: 0.9565, 0.9535, 0.9500
