Overview:
USD/CHF continues to range-trade. The rate is undermined by broadly weaker demand for safe-haven USD amid increased investor risk tolerance as investors confident that U.S. central bank will continue with easing measures to boost the economy after recent assurances from Fed's Bernanke and Yellen. But USD/CHF downside limited by positive USD sentiment. Daily chart is still positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- and 15-day moving averages are rising.
Recommendation:
Buy above 0.939 with first target at 0.9462 and second target at 0.9491.
Resistance levels:
R1 - 0.9462 (Friday's three-and-a-half month high)
R2 - 0.9491 (Nov. 16 high)
R3 - 0.9515 (Nov. 13 reaction high)
Alternative scenario:
Sell below the pivot point at 0.939 and look for first target at 0.9352 and second target at 0.935.
Support levels:
S1 - 0.9352 (Friday's low)
S2 - 0.9325
S3 - 0.9280
Technical comment:
RSI is showing upward movement, MACD is showing bullish sign and Stochastic is overbought.
