USD/CHF is expected to extend its downside movement. The pair broke below its 20-period and 50-period moving averages, which are playing resistance roles now, and consolidated on the downside. The relative strength index is below its neutrality level at 50 and lacks upward momentum. Additionally, 1.0165 is playing a key resistance role, which should limit the upside potential.
As long as this key level holds on the upside, look for a further drop towards 1.0090 and 1.0055 in extension.
Resistance levels: 1.0195, 1.0220, 1.0240
Support levels: 1.0090, 1.0055, 1.0020
