Overview:
USD/CHF is trading in lower range. The rate is undermined by spillover from euro strength on franc and broadly weaker demand for safe-haven USD amid strong investor risk appetite. But USD/CHF losses tempered by positions adjustment before weekend. Daily chart is mixed as MACD in bullish mode, but stochastic is bearish. The Jan. 2 reaction low at 0.9076 is braced for renewed pressure, although a downside break is not expected at this stage. Thursday's sharp setback appears to be consolidation of 0.9076/0.9303, and a recovery towards resistance at 0.9200 would keep the action within a broader bearish continuation pattern. Only a wave of fresh USD bear pressure would force a break into fresh eight-month lows, exposing 0.9000.
Preference:
Sell below 0.9195 with targets at 0.911 and 0.909 in extension.
Support Levels:
S1 - 0.911
S2 - 0.909
S3 - 0.9039 (May 1 low)
Alternative scenario:
Buy above 0.9195. Above 0.9195 look for further upside with 0.9225 and 0.927 as targets.
Resistance Levels:
R1 - 0.9225
R2 - 0.9273 (Wednesday's high)
R3 - 0.9285 (Monday's high), then 0.9302 (Jan. 4 high) and 0.9326 (Dec. 12 high, near 100-day moving average).
Technical Comment:
The pair is posting a rebound, but stands below its new resistance.
