USD/CHF is expected to trade with bullish bias above 0.9700. The pair remains on the upside within a bullish channel, which emerged on September 30. At the same time, the 50-period moving average is heading upward, and acts as a support role. The relative strength index is above its neutrality area at 50, and lacks downward momentum. The US Institute for Supply Management said its manufacturing index showed an expansion reading of 51.5 in September (vs. 50.4 expected), up from a contraction reading of 49.4 in August.
To sum up, as long as 0.9700 holds on the downside, look for a further advance to 0.9790 and even to 0.9820 in extension.
Resistance levels: 0.9790, 0.9825, 0.9845
Support levels: 0.9670, 0.9645, 0.9605
