USD/CHF is under pressure. The pair recorded lower tops and lower bottoms since April 17, which confirmed a negative outlook. The descending 20-period and 50-period moving averages suggest that the pair has potential for a further downside. The relative strength index has broken down its oversold level of 30.
Regarding economic data front, housing starts in the U.S. declined 6.8% on month to an annual rate of 1.22 million units in March, compared to 1.25 million units expected. U.S. industrial production grew 0.5% on month in March (as expected).
Hence, as long as 1.0005 is not surpassed, look for another drop to 0.9945 and even to 0.9905 in extension.
Resistance levels: 1.0025, 1.0050, and 1.0085
Support levels: 0.9945, 0.9905, and 0.9860
