USD/CHF is expected to continue its downside movement. The pair is trading below the declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.
On the economic data front, Empire Manufacturing index declined to 1.0 in the month of May (expected +7.5), a drop from the 5.2 improvement in the month of April. Additionally, Net long-term TIC Flows were $59.8 billion in the month of March, increasing from $53.1 billion in the month of February.
To conclude, as long as 0.9995 is not surpassed, a further drop to 0.9935 and even to 0.9900 seems more likely to occur.
Resistance levels: 1.0020, 1.0040, and 1.0060
Support levels: 0.9935, 0.9900, and 0.9865
