USD/CHF is expected to extend its downside movement. The pair is trading below the declining 20-period and 50-period moving averages, which play resistance role and maintain a downward bias. The relative strength index has been capped by a bearish trend line since May 1.
To sum up, as long as 0.9940 holds on the upside, a further drop to 0.9890 and even to 0.9875 seems more likely to occur.
Resistance levels: 0.9955, 0.9970, and 1.000
Support levels: 0.9890, 0.9875, and 0.9840
