USD/CHF is expected to extend its downside movement. The pair is holding on the downside. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index is mixed to bearish.
On the economic data front, the economic calendar lacks first-tier economic reports from the US. In Europe, the preliminary figure of eurozone consumer confidence index in May reached -3.3 vs -3 expected and -3.6 in April.
Therefore, as long as 0.9765 holds on the upside, I expect a further drop to 0.9660 and even to 0.9635 in extension.
Resistance levels: 0.9790, 0.9825, and 0.98555
Support levels: 0.9660, 0.9635, and 0.9600
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