Overview:
USD/CHF is trading in higher range. The rate is supported by contagion from weak euro on franc. But CHF sentiment boosted by higher-than-expected rise in Swiss 1Q Quarterly Consumer Sentiment Index to -6 from -17 in the previous quarter (vs. forecast of -13). USD/CHF upside is also limited by unwinding of CHF-funded carry trades amid decreased risk tolerance; positions adjustment before weekend. Daily chart is mixed as MACD is bearish; but stochastic is rising from oversold.
Preference:
Buy above 0.911 with targets at 0.922 and 0.925 in extension.
Resistance levels:
R1 - 0.922 (Thursday's high)
R2 - 0.925
R3 - 0.9270 (Jan. 29 high)
Alternative scenario:
Sell below 0.911. Below 0.911 look for further downside with 0.906 and 0.9019 as targets.
Support levels:
S1 - 0.9062-0.9052 band (Thursday's low-Wednesday's low)
S2 - 0.9019 (Feb. 1 10-month low)
S3 - 0.8998 (April 2 low) and 0.8927 (Feb. 24 low).
Technical comment:
The next resistances are at 0.922 and then at 0.925.
