Overview:
USD/CHF is trading with bullish bias. The rate is underpinned by contagion from weak euro; positive USD sentiment; lower-than-expected Swiss March KOF economic barometer (came in at 0.99 vs. 1.04 forecast). But USD/CHF gains tempered by positions adjustment ahead of Good Friday holiday. Daily chart is positive-biased as stochastics is in bullish mode, MACD is turning bullish; five- and 15-day moving averages are advancing.
Recommendation:
Buy above 0.949 with upside targets at 0.9553 and 0.9567.
Resistance levels:
R1 - 0.9553 (Wednesday's high)
R2 - 0.9567 (six-month high hit March 14)
R3 - 0.9608 (Sept. 5 high).
Alternative scenario:
Sell below 0.949 with downside targets at 0.9465 and 0.9445.
Support levels:
S1 - 0.9470 (Friday's low)
S2 - 0.944
S3- 0.9416 (200-day moving average)
