Overview:
USD/CHF is trading in lower range. The rate is undermined by broadly weaker demand for safe-haven USD amid stronger risk tolerance and CHF demand on strong CHF/JPY as negative JPY sentiment supports the cross; CHF demand on retreating EUR/CHF cross. Daily chart is still positive-biased as MACD is bullish, while stochastics stays elevated at overbought, five- and 15-day moving averages are rising; although inside-day-range pattern was completed on Monday.
Recommendation:
Sell below the pivot point 0.9455 and look for downside targets at 0.9398 and 0.9352.
Support levels:
S1 - 0.9406-0.9398 band (Thursday's low-Wednesday's low)
S2 - 0.9352 (March 1 low)
S3 - 0.9280 (Feb. 28 low).
Alternative scenario:
Buy above 0.9455 with first target at 0.951 and second target at 0.955.
Resistance levels:
R1 - 0.9515
R2 - 0.9550 (Friday's six-month high)
R3 - 0.9608 (Sept. 5, 2012 high)
