USD/CHF is expected to extend its downside movement. The pair is holding on the downside. The downward momentum is further reinforced by the declining 20-period and 50-period moving averages. The relative strength index has broken down its oversold level of 30, but has not displayed any reversal signal.
Regarding economic data, the U.S. Commerce Department reported that trade deficit amounted to $43.7 billion in March (vs. $44.5 billion expected, $43.8 billion in February). Growth in durable goods orders was finalized as +0.9% on month in March, up from +0.7% in February, while factory orders increased 0.2%, compared with +0.4% expected. Meanwhile, initial jobless claims were posted at 238,000 for the week ended April 29, lower than 248,000 expected and 257,000 in the prior week.
Hence, as long as 0.9905 holds on the upside, expect a further drop to 0.9840 and even to 0.9815 in extension.
Resistance levels: 0.9930, 0.9950, and 0.9975
Support levels: 0.9840, 0.9815, and 0.9770
