USD/CHF is under pressure. The pair recorded a succession of lower tops and lower bottoms since Jan 20 and is heading downwards. The downside momentum is further reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is bearish and has broken below its 30% level. Additionally, 1.0015 is playing a key resistance role, which should limit the upside potential.
The U.S. dollar fell as Trump's inauguration speech still could not provide investors with clarity on his tax reform and fiscal spending plans. Trump's speech also reiterated protectionism which investors thought would hurt the dollar
As long as this key level holds on the upside, look for a further drop toward 0.9960 and even 0.9935 in extension.
Resistance levels: 1.0030, 1.0050, 1.0070
Support levels: 0.9950, 0.9935, 0.9900
The material has been provided by InstaForex Company - www.instaforex.com
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