USD/CHF is under pressure. The technical picture of the pair is negative below a declining trend line, which emerged on Oct 13. The downward momentum is further reinforced by its declining 20-period and 50-period moving averages. The relative strength index is also capped by a bearish trend line. Although the U.S. Energy Information Administration reported that crude stockpiles increased 4.9 million barrels in the week ended October 7, compared with a build of just 700,000 barrels expected, oil prices bounced as traders learned that distillates dropped 3.7 million barrels (vs. -1.6 million barrels expected) and gasoline drew 1.9 million barrels (vs. -1.5 million barrels expected). Nymex crude added 0.5% to $50.44 a barrel.
As long as 0.9900 holds on the upside, look for a further drop toward 0.9840 and 0.9810 in extension.
Resistance levels: 0.9925, 0.9945, 0.9985
Support levels: 0.9840, 0.9810, 0.9790
