Overview:
USD/CHF is about to consolidate after hitting two-week high of 0.9217 on EBS Tuesday, undermined by weaker USD sentiment. However, USD/CHF losses are tempered by CHF sales on buoyant EUR/CHF cross; recent rhetoric from SNB officials against franc strength. Daily chart is mixed as MACD and stochastics are bullish; but bearish outside-day-range pattern completed Tuesday.
Preference:
Buy above 0.915 with targets at 0.9215 and 0.925 in extension.
Resistance Levels:
R1 - 0.9217 (Tuesday's high)
R2 - 0.925
R3 - 0.9270 (Jan. 29 high)
Alternative scenario:
Sell below 0.915. Below 0.915 look for further downside with 0.911 and 0.906 as targets.
Support Levels:
S1 - 0.911
S2 - 0.9062-0.9052 band (Thursday's low-Feb. 6 low)
S3 - 0.9019 (Feb. 1 10-month low)
Technical Comment:
A support base at 0.915 has formed and has allowed for a temporary stabilisation.
