Overview:
USD/CHF is trading with risks skewed higher. CHF sentiment weakened by 5.3% on-year drop in Swiss February exports and 5.4% drop in imports. USD/CHF is also underpinned by contagion from weak euro; positive USD sentiment; broadly stronger demand for safe-haven USD amid increased risk aversion. But USD/CHF gains tempered by CHF demand on soft EUR/CHF cross; positions adjustment before weekend. Daily chart is mixed as MACD and stochastics is in bearish mode; but five-day moving average is meandering sideways.
Recommendation:
Sell below 0.949 with downside targets at 0.9408 and 0.9377.
Support ;evels:
S1 - 0.9408 (Wednesday's low)
S2 - 0.9385-0.9377 band (Monday's low-March 15 low)
S3 - 0.9352 (March 1 low)
Alternative scenario:
Buy above 0.949 with upside targets at 0.9525 and 0.9567.
Resistance levels:
R1 - 0.9525
R2 - 0.9567 (six-month high hit March 14)
R3 - 0.9608 (Sept. 5 high)
