USD/CHF is expected to trade in a lower range as the pair in under pressure. The pair broke below the 20-period and 50-period moving averages and consolidated on the downside. The declining 20-period moving average crossed below the 50-period one and is heading downward. The relative strength index is below its neutrality level at 50 and lacks upward momentum.
On Monday, U.S. stock indexes posted the biggest losses of the year as investors' sentiment was dampened by President Trump's controversial immigration order, which has been regarded as not business-friendly. Investors were also cautious ahead of a heavy schedule of central bank meetings, economic data, and corporate earnings. The U.S. National Association of Realtors reported that pending home sales rose 1.6% on month in December (vs. +1.1% expected). The Dallas Federal Manufacturing Activity Outlook jumped to 22.1 in January (vs. 15.0 expected) from 17.7 in December.
As long as 0.9975 holds as resistance, look for a further drop to 0.9910 and even 0.9885 in extension.
Resistance levels: 1.000, 1.0015, 1.0030
Support levels: 0.9910, 0.9885, 0.9825
The material has been provided by InstaForex Company - www.instaforex.com
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