Overview:
USD/CHF is consolidating with bullish bias after hitting three-week high 0.9280 this morning, as markets await U.S. non-farm payrolls report. USD/CHF is supported by contagion from weak EUR on CHF; broadly stronger demand for safe-haven USD as investor risk aversion rises. But USD/CHF gains tempered by positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastic are in bullish mode; five-day moving average staged bullish crossover against 15-day MA; bullish parabolic stop-and-reverse signal hit at 0.9199 on Thursday.
Preference:
Buy above 0.9235 with targets 0.93 and 0.9325.
Resistance Levels:
R1 - 0.9296 (55-day moving average)
R2 - 0.9326 (Dec. 12 high)
R3 - 0.9349 (100-day moving average)
Alternative scenario:
Sell below 0.9235. The downside penetration of 0.9235 will call for 0.921 and 0.917.
Support Levels:
S1 - 0.9210 (hourly chart)
S2 - 0.9171 (Thursday's low)
S3 - 0.9145
Technical Comment:
The pair remains on the upside but the RSI lacks upward momentum, a pullback should not be ruled out ahead of further advance.
