Overview:
USD/CHF is consolidating with bearish bias as markets await EU's decision on bailout for Cyprus. USD/CHF is undermined by ultra-loose U.S. monetary policy; CHF demand on soft EUR/CHF cross. USD/CHF is also weighed by weaker USD sentiment after Federal Reserve's Raskin said on Friday that policy makers intend to keep U.S. interest rates low "for a considerable time”. Daily chart is negative-biased as MACD and stochastics are in bearish mode.
Recommendation:
Sell below 0.9425 with downside targets at 0.9377 and 0.9352.
Support levels:
S1 - 0.9377 (March 15 low)
S2 - 0.9352 (March 1 low)
S3 - 0.9280 (Feb. 28 low, near confluence of 55-day and 100-day moving averages).
Alternative scenario:
Buy above 0.9425 with upside targets at 0.945 and 0.9485.
Resistance levels:
R1 - 0.945
R2 - 0.9482-0.9491 band (Thursday's high-Tuesday's high)
R3 - 0.9567 (six-month high hit March 14)
