USD/CHF is expected to stick to its downside movement. The pair recorded a succession of lower tops and lower bottoms since Feb. 15, which confirms a negative view. The downward momentum is further reinforced by its declining 20-period and 50 period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is capped by a bearish trendline (since Feb. 15) and is below its neutrality level at 50. Additionally, the upward potential should be limited by the key resistance level at 1.0015 (Feb. 13 bottom).
As long as this key level is not surpassed, expect a further drop to 0.9955 and 0.9930 in extension.
Resistance levels: 1.0050, 1.0075, and 1.0095
Support levels: 0.9955, 0.9930, and 0.9900
The material has been provided by InstaForex Company – www.instaforex.com