Overview:
USD/CHF is trading in lower range. The rate is undermined by weaker USD sentiment. But USD/CHF losses tempered by CHF sales on buoyant EUR/CHF cross; CHF sales on spot CHF/JPY as stronger yen sentiment weighs on the cross; official rhetoric against strong franc - "For almost 18 months now, the SNB has been enforcing the minimum exchange rate with the utmost determination, and will continue to do so," said SNB chief Thomas Jordan Tuesday. Daily chart is still positive-biased as MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and rising.
Preference:
Sell below 0.922 with targets at 0.917 and 0.915 in extension.
Support levels:
S1 - 0.9169 (Thursday's low)
S2 - 0.9153-0.9150 (Feb. 13 low-Feb. 12 low)
S3 - 0.9062-0.9052 band (Feb. 7 low-Feb. 6 low).
Alternative scenario:
Above 0.922 look for further upside with 0.9255 and 0.929 as targets.
Resistance levels:
R1 - 0.9250-0.9259 band (Tuesday's high-Monday's high)
R2 - 0.9292 (Jan. 28 high)
R3 - 0.9307 (Jan. 25 high)
Technical comment:
The break below 0.922 is a negative signal that a path to 0.9175 was opened.
