USD/CHF is expected to trade with bearish bias as the key resistance at 0.9965. Despite the recent rebound, the pair is still trading below its declining 50-period moving average, which plays a resistance role and maintains the downside bias. The upside potential should be limited by the key resistance at 0.9965. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
The US dollar continued to show weakness as investors' skepticism grew whether the Donald Trump administration would be able to push through promised fiscal stimulus and tax cuts.
To sum up, as long as 0.9965 holds on the upside, look for a further drop to 0.9905 and even to 0.9880 in extension.
Resistance levels: 0.9990, 1.0020, and 1.0045
Support levels: 0.9905, 0.9880, and 0.9845
