USD/CHF is under pressure. The pair is trading below its declining 50-period moving average which plays a resistance role and maintains the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 1.0145 is playing a key resistance role which should limit the upside potential. In a quiet session, the US dollar was further off its high in almost 14 years as the ICE U.S. Dollar Index eased by 0.2% to 101.49. However, the forces that drove the currency higher, namely investors' confidence about US economic growth and expectations of higher interest rates, remain intact.
As long as resistance holds at 1.0145, look for a further drop toward 1.0060. A break below this level would call for a further fall toward 1.0020.
Resistance levels: 1.0190, 1.0220, 1.0250
Support levels: 1.0060, 1.0020, 1.00
The material has been provided by InstaForex Company - www.instaforex.com