Overview:
USD/CHF is in range-trade. The rate is supported by contagion from weak euro; broadly stronger demand for safe-haven USD amid negative global risk sentiment. But USD/CHF upside is limited by CHF demand on soft EUR/CHF cross. Daily chart is still negative-biased as MACD and stochastics are in bearish mode. USD/CHF is also weighed by weaker USD sentiment after surprise drop in U.S. March NAHB housing market index to 44 this month from 46 in February (vs. forecast for rise to 48); lower U.S. Treasury yields; Japan exporter sales.
Recommendation:
Sell below 0.9475 with downside targets at 0.9415 and 0.9375.
Support levels:
S1 - 0.94
S2 - 0.9385-0.9377 band (Monday's low-Friday's low)
S3 - 0.9352 (March 1 low)
Alternative scenario:
Above 0.9475, look for further upside with 0.9494 and 0.9525.
Resistance levels:
R1 - 0.9494 (Monday's high)
R2 - 0.9525
R3 - 0.9567 (Thursday's six-month high)
