Overview:
USD/CHF continues to range-trade. The rate is supported by negative USD sentiment; diminished worries over euro-zone debt crisis on Greece's EUR10 billion bond-buyback plan to reduce half of its debt owned by private creditors, and euro-zone finance ministers' approval of EUR 39.5 billion in aid to Spain's banks.USA fiscal cliff as budget negotiations showing no sign of progress - President Obama said on Tuesday latest Republican budget proposal remains "out of balance," and on prospects that U.S. Federal Reserve may embark on more purchases of longer-dated Treasury bonds at next week's monetary-policy meeting. But USD/CHF downside is limited by CHF sales on buoyant EUR/CHF cross; Credit Suisse's announced on Monday it will implement negative interest rates on interbank accounts starting next week.
Preference:
Buy above 0.924 with targets 0.932 and 0.934 in extension.
Resistance Levels:
R1 - 0.932
R2 - 0.9341 (Nov. 28 high)
R3 - 0.9393 (Nov. 22 high)
Alternative scenario:
Sell below 0.924. Below 0.924 look for further downside with 0.921 and 0.9175 as targets.
Support Levels:
S1 - 0.9210 (Oct. 17 reaction low)
S2 - 0.9175
S3 - 0.9039 (May 1 low) and psychological 0.9000 line.
Technical Comment:
The RSI is mixed with a bullish bias. Daily chart is still negative-biased as MACD and stochastic are bearish, although latter is at oversold; five-day moving average is below 15-day MA and falling.
