USD/CHF is expected to extend its downside movement. The pair accelerated on the downside yesterday after the failure of the break above its key resistance at 0.9810, which maintains the bearish bias. Both the 20-period and 50-period moving averages are heading downward. The relative strength index broke below its 30 level, and lacks upward momentum. On the economic data front, the ISM non-manufacturing composite index fell to 51.4 in August (estimated 54.9) from 55.5 in the previous month. The U.S. dollar tumbled on weak business data.
To sum up, as long as 0.9810 holds on the upside, the pair is likely to drop to 0.9645 at first, and then to 0.9590.
Resistance levels: 0.9855, 0.9885, 0.9935
Support levels: 0.9645, 0.9590, 0.9525
The material has been provided by InstaForex Company - www.instaforex.com