Overview:
USD/CHF is trading in higher range. The rate is supported by contagion from weak EUR on CHF; broadly stronger demand for safe-haven USD amid negative global risk sentiment. Daily chart is mixed as MACD is bullish, but stochastic is bearish near overbought. Tuesday's successful defence of the 0.9200 level suggests a return to the Jan. 4 reaction high at 0.9303 is on the cards. A push above 0.925 would provide the signal for more gains to 0.9285 and the 0.9303 high, strengthening the Jan. 2 bear trap reaction low at 0.9076 in the process. Only a reversal below 0.9200 and 0.9170 would question the USD bullish outlook, exposing 0.9135.
Preference:
Sell below 0.925 with targets at 0.9195 and 0.917 in extension.
Support Levels:
S1 - 0.9198 (Tuesday's low)
S2 - 0.9171 (Thursday's low)
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:
The pair is on the upside and is challenging its new resistance, the RSI is mixed and calls for caution.
