Overview:
USD/CHF is in range trade. The rate is undermined by broadly weaker demand for safe-haven USD as investor risk aversion decreases. Fed's Yellen said the U.S. central bank should press on with $85 billion in monthly bond buying as the balance of risks still called for a highly accommodative monetary policy to support a stronger recovery and more rapid growth in employment. Risk sentiment boosted after U.S. February ISM-NY Current Business Conditions Index increased to 58.8 in February, its highest since March 2012, from 56.7 in January.
Preference:
Buy above pivot point at 0.9375 with first targets at 0.944 and second target at 0.947
Resistance levels:
R1 - 0.9441 (Monday's high)
R2 - 0.9462 (Friday's three-and-a-half month high)
R3 - 0.9515 (Nov. 13 reaction high) and 0.9608 (Sept. 5 high).
Alternative scenario:
Sell below 0.9375 and look for first target at 0.935 and breach of would will target 0.9315.
Support levels:
S1 - 0.9352 (Friday's low)
S2 - 0.9315
S3 - 0.9280 (Thursday's low)
Technical comment:
Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are rising; although inside-day-range pattern was completed on Monday.
