USD/CHF is under pressure. The pair broke below the rising trend line since May 23 and both 20-period and 50-period moving averages. Additionally, the bearish cross between 20-period and 50-period moving averages has been identified. The relative strength index also broke below a bullish trend line since May 22.
On the economic data front, MBA mortgage applications increased 4.4% in week ended May 19 from a decline of 4.1% in the previous week. In other news, the FHFA House Price Index improved 0.6% month-on-month in March (estimated +0.5%) compared with an increase of 0.8% in February. Separately, existing home sales decreased to 5.57M units in April (forecasted 5.65M) from 5.70M units in the prior month.
Hence, as long as 0.9775 (the high of May 24) is not surpassed, expect a return to 0.9700 and even to 0.9680 in extension.
Resistance levels: 0.9790, 0.9805, and 0.9835
Support levels: 0.9700, 0.9680, and 0.9650
