USD/CHF is expected to extend its upside movement. The pair is holding on the downside after the failure to break above the nearest resistance at 0.9800. At the same time, both the 20-period and 50-period moving averages are heading downward, and are playing resistance roles. Besides, the relative strength index is bearish below its neutrality area at 50. U.S. government bonds experienced extended selling pressure with the benchmark 10-year Treasury yield charging further to 1.718% from 1.683% Tuesday. Worries over the potential tapering of bond purchases by the ECB added to jitters in the bond market. In fact, government bonds in the eurozone's periphery countries, such as Portugal, Spain, Italy, and Ireland, also saw heavy selloffs.
Hence, as long as 0.9800 holds on the upside, a new decline is likely to occur to 0.9715 at first, and then to 0.9690.
Resistance levels: 0.9830, 0.9845, 0.9945
Support levels: 0.9715, 0.9690, 0.9645
