Overview:
USD/CHF is trading in lower range. The rate is undermined by CHF demand on soft EUR/CHF cross and by weaker USD sentiment after bigger-than-expected drop in U.S. ISM manufacturing PMI to 51.3 in March (vs. 54.0 forecast) from 54.2 in February reduced bets that the Federal Reserve might pull back from quantitative easing anytime soon. Daily chart is tilting negative as bearish outside-day-range pattern was completed on Monday; MACD and stochastics are in bearish mode.
Recommendation:
Sell below 0.949 with downside targets at 0.944 and 0.9414.
Support levels:
S1 - 0.944
S2 - 0.9414 (200-day moving average)
S3 - 0.9353 (March 25 low).
Alternative scenario:
Buy above 0.949 with upside targets at 0.9505 and 0.9526 as targets.
Resistance levels:
R1 - 0.9507
R2 - 0.9526 (Monday's high)
R3 - 0.9547-0.9553 band (Thursday's high-Wednesday's high)
