USD/CHF is expected to prevail its downside movement. The pair is under pressure below the key resistance at 1.0055. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50.
After meeting with Russian President Vladimir Putin, U.S. Secretary of State Rex Tillerson said relations with Russia are at a low point. On the other hand, Trump said in an interview with The Wall Street Journal that the dollar "is getting too strong" and he would prefer keeping interest rates low. The U.S. dollar saw its recent decline accelerate as Trump's "getting too strong" comments on the currency reminded the market of the president's protectionist trade rhetoric.
Hence, below 1.0085, look for a new drop to 1.0005 and even to 0.9990 in extension.
Resistance levels: 1.0105, 1.0130, and 1.0165
Support levels: 1.0005, 0.9990, and 0.9960
