Overview:
USD/CHF is consolidating after hitting five-week low of 0.9291 on Wednesday. The rate is undermined by CHF demand on buoyant CHF/JPY as weak yen sentiment supports the cross; broadly weaker demand for safe-haven USD amid positive investor risk sentiment. But USD/CHF downside is limited by improved USD sentiment; CHF sales on buoyant EUR/CHF, AUD/CHF, and NZD/CHF crosses. Daily chart is still negative-biased as MACD and stochastics are in bearish mode; five-day moving average is below 15-day MA and falling.
Recommendation:
Sell below 0.9335 with upside targets at 0.927 and 0.923.
Support levels:
S1 - 0.9280 (Feb. 28 low)
S2 - 0.9230 (Feb. 25 low)
S3 - 0.9182 (Feb. 20 low).
Alternative scenario:
Buy above 0.9335 with upside targets 0.9365 and 0.94.
Resistance levels:
R1 - 0.9366 (Tuesday's high)
R2 - 0.94
R3 - 0.9433 (Friday's high)
