Overview:
USD/CHF is consolidating with bearish bias after hitting nearly two-month low of 0.9223 on Thursday. The rate is weighed by CHF demand on softer EUR/CHF cross after Swiss National Bank Thursday made no changes to its policy of ensuring the euro does not trade below 1.20 Swiss francs and no changes to its interest rate targets, disappointing some market participants betting SNB might lift its EUR/CHF intervention floor from 1.2000. USD/CHF is also undermined by weaker USD sentiment. But USD/CHF losses tempered by imposition of negative rates on Swiss franc deposits by Credit Suisse and UBS; broadly stronger demand for safe-haven USD as risk appetite falls; positions adjustment before weekend.
Preference:
Sell below 0.925 with targets 0.9195 and 0.917 in extension.
Support Levels:
S1 - 0.9191 (May 8 low)
S2 - 0.917
S3 - 0.915
Alternative scenario:
Buy above 0.925. Above 0.925 look for further upside with 0.9275 and 0.9295 as targets.
Resistance Levels:
R1 - 0.9275 (Thursday's high)
R2 - 0.9295
R3 - 0.9326 (Wednesday's high)
Technical Comment:
The pair is posting a rebound but stands below its resistance. Daily chart is negative-biased as MACD and stochastic are in bearish mode.
