USD/CHF is expected to continue its downside movement. The pair recorded a succession of lower tops and lower bottoms since August 9 and is capped by a descending trend line. The declining 20-period and 50-period moving averages are playing resistance roles and maintain the downside bias. The relative strength index is bearish and has broken below its 30 level.The benchmark 10-year U.S. Treasury yield declined further to 1.509% from 1.548% Tuesday. With a weaker U.S. dollar, gold surged up to $1357 an ounce before closing at $1346, up 0.4% on day. Silver gained over 3% to $20.49 an ounce and settled at $20.06, up 1.1% on day. The U.S. dollar experienced broad-based selling with the ICE U.S. Dollar Index falling 0.6% to 95.60. The index has given back all gains generated by last Friday's robust July jobs report and is now below its 200-day moving average. As long as the descending trend line and key resistance at 0.9845 remains intact, look for further drop toward 0.9720 and even 0.9690 in extension.
Resistance levels: 0.9875, 0.9905, 0.9985
Support levels: 0.9720, 0.9690, 0.9670
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