USD/CHF is under pressure. The pair faces the challenge of its nearest resistance at 1.0275, and may post a new decline in the coming trading hours. The relative strength index lacks upward momentum, calling for caution. U.S. government bonds gained in prices as the five-year auction drew the strongest demand since November 2014. The five-year notes were sold at a 2.057% yield. Meanwhile, the benchmark U.S. 10-year Treasury yield declined to 2.510% from 2.562% Tuesday. The National Association of Realtors reported that pending home sales fell 2.5% on month in November, compared to +0.5% expected.
Therefore, as long as 1.0275 is resistance, further losses are expected to 1.0240 in extension.
Resistance levels: 1.0290, 1.0310, 1.0330
Support levels: 1.0240, 1.0225, 1.0200
The material has been provided by InstaForex Company – www.instaforex.com