USD/CHF is expected to extend its upward movement. The pair holds on the upside with a succession of higher tops and higher bottoms since October 6. Meanwhile, the rising 50-period moving average is playing a support role and maintains the bullish bias. In addition, a strong support base at 0.9760 has formed and the downward potential should be limited by this level. Besides, the relative strength index is still above its neutrality area at 50. As strong U.S. economic data bolstered the case for the Federal Reserve to raise interest rates in coming months, selling pressure on U.S. government bonds persisted, pushing the benchmark 10-year Treasury yield to 1.741% from 1.718% Wednesday.
As long as 0.9760 is support, look for further advance to 0.9865 and 0.9885 in extension.
Resistance levels: 0.9865, 0.9885, 0.9945
Support levels: 0.9730, 0.9700, 0.9645
