Overview:
USD/CHF is consolidating after hitting two-week high of 0.9371 on Monday. The rate is undermined by profit-taking on yen-shorts after failed attempt to break above the psychological 100.00 line Monday; weaker USD sentiment after surprise 0.6% on-month drop in U.S. existing home sales to 4.92 million in March (vs. forecast for 0.8% rise) and fall in Chicago Fed's National Activity Index to minus 0.23 in March from plus 0.76 in February; Japan exporter sales. But USD/CHF downside is limited by CHF sales on buoyant EUR/CHF cross. Daily chart is mixed as MACD is bearish; but stochastics is rising from oversold; bullish parabolic stop-and-reverse signal was hit at 0.9354 on Monday.
Trading Recommendation:
At the best-case scenario the pair is trading in higher ranges and if it continues the above mentioned behavior and is traded above its pivot point predicted, then buys with upside targets at 0.943 and 0.944 will be preferred, where Pivot point stands at 0.934. In case the price moves in opposite direction and returns from its resistance or moves below its pivot point it will be most favorably to trade in lower range and sell below the pivot point with first target at 0.9303 and second target at 0.9275.
Resistance levels:
R1 - 0.9433 (April 5 high), R2 - 0.945, R3 - 0.9526 (April 4 high)
Support levels:
S1 - 0.9303 (Monday's low), S2 - 0.9274 (Friday's low), S3 - 0.9204 (April 16 low)
