USD/CHF is under pressure. The pair recorded lower tops and lower bottoms Since May 11, which confirmed a bearish outlook. The downward momentum is further reinforced by the descending 20-period and 50-period moving averages. The relative strength index broke below the oversold level of 30.
On the economic data front, housing starts unexpectedly declined to 1,172K in April compared with a revised 1,203K last month. Building permits declined to 1,229K in April compared to a revised 1,260K in the prior month. U.S. industrial production rose 1% in April, higher than the forecasted 0.4% increase compared with a downward revision of a 0.4% increase last month. Finally, Capacity utilization climbed to 76.7%, the highest since August of 2015.
Hence, as long as 0.9910 is not surpassed, expect a further decline to 0.9800 and even to 0.97700 in extension.
Resistance levels: 0.9950, 0.9990, and 1.0020
Support levels: 0.9800, 0.9770, and 0.9725
