Overview:
USD/CHF is consolidating in higher range as markets are awaiting U.S. non-farm payrolls report and unemployment rate (expected 7.9%). Thursday's push above 0.9300 brings the focus onto resistance at 0.9341. The rally is still considered corrective in nature though, which could extend as high as 0.9400 before USD bears look to gather again. A break and daily close back below 0.9300 would leave the Dec. 3 low at 0.9241 vulnerable. USD/CHF is supported by contagion from weak EUR on CHF. But USD/CHF gains tempered by positions adjustment before weekend.
Data focus:
08:00 GMT Swiss November SNB foreign currency reserves.
Preference:
Buy above 0.93 with 0.934 and 0.9355 in sight.
Resistance Levels:
0.9340-0.9341 (Thursday's high-Nov. 28 high)
0.9358 (Nov. 23 high)
0.9393 (Nov. 22 high)
Alternative scenario:
Sell below 0.929. The downside penetration of 0.929 will call for a slide towards 0.925 and 0.9235.
Support Levels:
0.9253 (Thursday's low)
0.9239 (Monday's low)
0.9210 (Oct. 17 reaction low)
Technical Comment:
The break above 0.929 is a positive signal that a path to 0.934 has opened. Daily chart is mixed as MACD is bearish, but stochastic turned bullish at oversold; bullish parabolic stop-and-reverse signal hit 0.9299 on Thursday.
