Overview:
USD/CHF is consolidating in lower range after hitting near-two-month low of 0.9262 on Friday. The rate is undermined by negative USD sentiment; CHF demand on soft EUR/CHF cross. The rate is influenced by U.S. Treasury Department's report Friday that it is monitoring Japan's new policies and will press Japanese PM Abe's government to "refrain from competitive devaluation"; weaker USD sentiment after U.S. March retail sales fell more-than-expected 0.4% (vs. minus 0.1% forecast), University of Michigan consumer sentiment index's preliminary April reading dropped to nine-month low of 72.3 (vs. 79.0 forecast) from final March level of 78.6, U.S. PPI fell sharper-than-expected 0.6% in March (vs. minus 0.4% forecast). Daily chart is negative-biased as MACD and stochastics are bearish, although latter is at oversold; five- and 15-day moving averages are falling.
Recommendation:
Sell below 0.9335 with downside targets at 0.9262 and 0.923.
Support levels:
S1 - 0.9262 (Friday's 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 0.939.
Resistance levels:
R1 - 0.9366 (Tuesday's high)
R2 - 0.9395
R3 - 0.9433 (April 5 high)
