Overview:
USD/CHF is trading with risks skewed lower. The rate is undermined by broadly weaker demand for safe-haven USD amid decreased risk aversion. But USD/CHF losses tempered by positions adjustment before weekend.
Preference:
Short positions below 0.936 with targets at 0.9295 and 0.927 in extension.
Support Levels:
0.9291 (Monday's low)
0.9270 (Oct. 5 low)
0.9235 (Sept. 14 reaction low)
Alternative scenario:
Above 0.936 look for further upside with 0.939 and 0.9418 as targets.
Resistance Levels:
0.939
0.9418 (Thursday's high), then at
0.9431-0.9438 band (Wednesday's high-Oct. 1 high)
Comment:
The pair stands below its resistance and remains under pressure. Daily chart is mixed as MACD is bullish, but stochastics is turning bearish.
