Overview:
USD/CHF is consolidating with bearish bias after hitting six-week low of 0.9239 on Monday. The rate is undermined by weaker USD sentiment; buoyant commodity prices and buoyant oil prices (Nymex crude settled up 18 cents on Monday at $89.09/bbl); higher-than-expected rise in Swiss PMI to 48.5 in November from October's 46.1 (vs. 47.0 forecast). But CHF sentiment dented after Credit Suisse announced it would implement negative interest rates on interbank accounts starting next week. USD/CHF losses also tempered by CHF sales on the buoyant EUR/CHF cross.
Preference:
Sell below 0.927 with 0.924 and 0.921 as next targets.
Support Levels:
S1 - 0.9239 (Monday's low)
S2 - 0.9210 (Oct. 17 reaction low)
S3 - 0.9191 (May 8 low)
Altenative scenario:
The upside penetration of 0.927 will call for a rebound towards 0.9285 and 0.9305.
Resistance Levels:
R1 - 0.9286-0.9292 band (Monday's high-Friday's high)
R2 - 0.903 (Thursday's high)
R3 - 0.9341 (Wednesday's high)
Tehnical Comment:
The pair is trading in a bearish channel. Daily chart is negative-biased as MACD and stochastic are bearish, although latter is at oversold.
