Overview:
USD/CHF is to trade in lower range undermined by spillover from the EUR strength on CHF, softer USD sentiment, broadly weaker demand for safe-haven USD as investor risk appetite improves. Daily chart is still positive-biased as the MACD & stochastics are in bullish mode. The USD/CHF: resistance at Friday's 0.9302 high remains under threat, and scope for further USD gains to 0.9344 exists. The powerful recovery from the last week's spike low at 0.9076 - an eight month low - puts USD bulls in control of the short-term, although only trade above the Dec. 7 lower high at 0.9371 would strengthen their resolve. Support at 0.9175 limits scope for corrective weakness protecting 0.9135 and 0.9076.
Preference:
Sell below 0.9275 with 0.9205 & 0.9165 in sight.
Support Levels:
S1 - 0.9205
S2 - 0.9171 (Thursday's low)
S3 - 0.9075 (Wednesday's low)
Alternative scenario:
Buy above 0.9275. The upside penetration of 0.9275 will call for a rebound towards 0.93 & 0.934.
Resistance Levels:
R1 - 0.9302 (Friday's high)
R2 - 0.9344 (100-day moving average)
R3 - 0.9371 (Dec. 10 high).
Technical Comment:
The pair is rebounding approaching its new resistance, the RSI is on the upside but lacks upward momentum, caution.
