Overview:
USD/CHF is to consolidate with bullish bias after hitting near four-month high of 0.9490 Thursday, as markets await U.S. non-farm payrolls report. USD/CHF undermined by spillover from the euro strength on the franc; CHF demand on buoyant CHF/JPY as negative JPY sentiment supports the cross. But USD/CHF losses tempered by CHF sales on buoyant EUR/CHF cross; positions adjustment before weekend.
Recommendation:
Buy above the pivot point 0.946 and look for upside target with first target in sight at 0.9545 and second target at 0.9585.
Resistance Levels:
R1 - 0.9545
R2 - o.9586
R3 - 0.9608 (Sept. 5 high).
Alternative Scenario:
Sell below 0.946 with first target at 0.9425 and second target at 0.94
Support Levels:
S1 - 0.9425
S2 - 0.94
S3 - 0.9375
Technical comment:
Daily chart still positively biased as MACD is bullish, stochastics stays elevated at overbought, five- & 15-day moving averages rising.
