USD/CHF is expected to trade with bullish bias. The pair broke above its 20-period and 50-period moving averages, which are playing support roles now, and is holding on the upside. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 0.9915 is playing the key support role, which should limit the downside potential. U.S. and German government bonds saw increased demand after European Central Bank President Mario Draghi revealed that policy makers had not discussed tapering bond purchases. The benchmark 10-year U.S. Treasury yield eased to 1.745% from 1.752% Wednesday. Meanwhile, the 10-year German bund yield sank to 0.004% from 0.032% a day earlier.

As long as this key level is not broken, look for a further upside toward 0.9970 and 1.000 in extension.

Resistance levels: 0.9970, 1.0000, 1.0075

Support levels: 0.9895, 0.9870, 0.9850