Overview:
USD/CHF is to trading with risks skewed higher. The rate is underpinned by broadly stronger demand for safe-haven USD amid negative global risk sentiment. But USD/CHF gains tempered by CHF demand on soft EUR/CHF cross as euro zone remains the main cause of concern.
Preference:
Long positions above 0.938 with targets at 0.943 and 0.947 in extension.
Resistance Levels :
0.9431-0.9438 band (Wednesday's high-Oct. 1 high)
0.9473 (Sept. 11 high)
0.9485 (Sept. 10 high).
Alternative scenario:
Below 0.938 look for further downside with 0.9365 & 0.932 as targets.
Support Levels:
0.9370 (Wednesday's low)
0.9318 (Tuesday's low)
0.9291 (Monday's low)
Comment:
A support base at 0.938 has formed and has allowed for a temporary stabilization. Daily chart positive-biased as MACD & stochastics is in bullish mode; bullish parabolic stop-and-reverse signal hit at 0.9428 Wednesday.
