Overview:
USD/CHF is consolidating with bearish bias after hitting five-month low of 0.9211 this morning. The rate is undermined by broadly weaker demand for safe-haven USD amid positive risk sentiment.
Preference:
Technical indicators showing the bearish trend so today short is preferable position. Recommended trade is the following one: sell below 0.927 with first target 0.9215 and after that 0.919 in extension.
Support Levels:
0.9215
0.9191 (May 8 low)
0.9175 (May 1 reaction low)
Alternative scenario:
In case market crosses the pivot point of 0.927 adjust your position in the following way: above 0.927 look for further upside with 0.9315 and 0.934 as targets.
Resistance Levels:
0.9315
0.9337 (Tuesday's high)
0.9371 (Monday's high)
Comment:
The pair stands below its resistance and remains under pressure. Daily chart is negative-biased as stochastics is bearish; MACD is staging bearish crossover against its exponential moving average.
