Overview:
USD/CHF is trading with risks skewed lower. The rate is undermined by CHF demand on retreating EUR/CHF cross; profit-taking on USD-longs and undermined by amid decreased risk appetite (VIX fear gauge rose 6.14% to 12.27, S&P fell 0.24% overnight); profit-taking on USD-longs after extended dollar advance. Daily chart is mixed as MACD is bullish, but stochastics has turned bearish at overbought.
Recommendation:
Sell below the pivot point 0.9505 with downside targets at 0.9433 and 0.9398.
Support levels:
S1 - 0.9433 (Tuesday's low)
S2 - 0.9406-0.9398 band (Thursday's low-March 6 low)
S3 - 0.9386 (March 5 low)
Alternative scenario:
Buy above 0.9505 and look for upside targets at 0.955 and 0.9608.
Resistance levels:
R1 - 0.9550 (Friday's six-month high)
R2 - 0.9608 (Sept. 5 high)
R3 - 0.9634 (Aug. 28, 2012 high)
