Overview:
USD/CHF is consolidating with bullish bias after hitting five-week high of 0.9374 on Thursday. The rate is supported by positive USD sentiment; broadly stronger demand for safe-haven USD as risk aversion increases. But CHF sentiment soothed by stronger-than-expected Swiss 4Q GDP on-quarter growth of +0.2% (vs. +0.1% forecast). USD/CHF gains also tempered by positions adjustment before weekend. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Thursday; MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are rising.
My recommendation:
Buy above 0.9320 with target 0.9374 breach of which would target 0.9425.
Resistance levels:
R1 - 0.9374 (Thursday's high)
R2 - 0.9425 (200-day moving average)
R3 - 0.9460 (Nov. 21 high).
Alternative scenario:
If the price moves below to the pivot point of 0.9320 then look for downward movement towards 0.9285 and below that 0.9255.
Support levels:
S1 - 0.9280 (Thursday's low)
S2 - 0.9255
S3 - 0.9232 (Monday's low)
Comment:
The RSI is at its neutrally area. Stochastic is showing overbought sign and MACD is giving bullish.
