Overview:
USD/CHF is consolidating with bullish bias after hitting three-week high of 0.9259 on Monday. The rate is underpinned by positive USD sentiment. But USD/CHF gains tempered by CHF demand on buoyant CHF/JPY, as weak yen sentiment supports the cross. Daily chart is positive-biased as MACD and stochastics are bullish; five-day moving average is above 15-day MA and rising.
Preference:
Buy above 0.92 with targets at 0.9255 and 0.929 in extension.
Resistance levels:
R1 - 0.9255 (Monday's high)
R2 - 0.9292 (Jan. 28 high)
R3 - 0.9324 (Jan. 24 high).
Alternative scenario:
Sell below 0.92. Below 0.92 look for further downside with 0.9175 and 0.915 as targets.
Support levels:
S1 - 0.9175 (Thursday's low)
S2 - 0.9153-0.9150 (Wednesday's low-Feb. 12 low)
S3 - 0.9062-0.9052 band (Feb. 7 low-Feb. 6 low).
Technical comment:
A support base at 0.92 has formed and has allowed for a temporary stabilisation.
