Overview:
USD/CHF is trading with bullish bias after hitting three-week high of 0.9287 Wednesday. The rate is underpinned by stronger USD sentiment. But USD/CHF gains tempered by CHF demand on softer EUR/CHF cross; flows to safe-haven CHF amid increased risk aversion; rise in ZEW-Credit Suisse indicator of economic sentiment to 32-month high of +10 in February from minus 6.9 in January. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Wednesday; MACD and stochastics are bullish, although latter is at overbought; five-day moving average is above 15-day MA and rising.
Preference:
Buy above 0.926 with targets at 0.9325 and 0.9345 in extension.
Resistance levels:
R1 - 0.9324 (Jan. 24 high)
R2 - 0.9345
R3 - 0.9389 (Jan. 18 reaction high).
Alternative scenario:
Sell below 0.926. Below 0.926 look for further downside with 0.9235 and 0.92 as targets.
Support levels:
S1 - 0.9235
S2 - 0.92
S3 - 0.9185 (Wednesday's low)
Technical comment:
The RSI is bullish and calls for further upside.
