Overview:
USD/CHF is trading with bearish bias. The rate is undermined by spillover from EUR strength on CHF and negative USD sentiment. Daily chart is mixed as MACD is bullish, but stochastic is turning bearish near overbought. Support at 0.9170 is expected to limit the corrective bear wave from last Friday's 0.9303 high. Consolidation is already showing signs of basing above 0.920, and a recovery above 0.925 would provide the signal for more gains to 0.9287 and the 0.9303 high. Only a sustained break below 0.9165 would question the USD bullish outlook, exposing 0.9135.
Preference:
Sell below 0.925 with targets at 0.9195 and 0.9165 in extension.
Support Levels:
S1 - 0.9195
S2 - 0.9165
S3 - 0.9135
Alternative scenario:
Buy above 0.925. Above 0.925 look for further upside with 0.9285 and 0.93 as targets.
Resistance Levels:
R1 - 0.9285 (Monday's high)
R2 - 0.9302 (Friday's high)
R3 - 0.9326 (Dec. 12 high)
Technical Comment:
As long as 0.925 is resistance, look for choppy price action with a bearish bias.
