Overview:
USD/CHF is consolidating with bearish bias after hitting 10-month low of 0.9019 on Friday. CHF sentiment boosted by higher-than-expected rise in Swiss PMI to 52.5 in January (vs. 50.3 forecast) from December's 49.2. USD/CHF is also undermined by spillover from EUR strength on CHF. But USD/CHF losses tempered by CHF-funded carry trades amid positive investor risk sentiment. Daily chart negative-biased as MACD and stochastic are bearish, although latter is at oversold; five-day moving average is below 15-day MA and falling.
Preference:
Sell below 0.9125 with targets at 0.902 and 0.897.
Support levels:
S1 - 0.9019 (Friday's low)
S2 - 0.897
S3 - 0.895
Alternative scenario:
Buy above 0.9125. The upside penetration of 0.9125 will call for 0.917 and 0.919.
Resistance levels:
R1 - 0.917
R2 - 0.919
R3 - 0.9234 (Wednesday's high)
Technical comment:
The pair stands below its new resistance and remains under pressure, the RSI is turning down.
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