USD/CHF: Bullish bias
Overview:
USD/CHF is consolidating with bearish bias after hitting eight-day low of 0.9219 on Friday. The rate is undermined by spillover from EUR strength on CHF. But USD/CHF losses tempered by CHF sales on buoyant EUR/CHF cross. Daily chart is mixed as MACD is bullish, but stochastic is in bearish mode.
Preference:
Buy above 0.9215 with targets at 0.932 and 0.9345 in extension.
Resistance level:
R1 – 0.9324 (Thursday’s high)
R2 – 0.9346 – 0.9354 band (Tuesday’s high-Jan. 21 high)
R3 – 0.9389 (Jan. 18 high)
Alternative scenario:
Sell below 0.9215. Below 0.9215 look for further downside with 0.918 and 0.916 as targets.
Support levels:
S1 – 0.918
S2 – 0.916
S3 – 0.915
Technical comment:
The pair is facing a pullback on its new support but remains on the upside.
The material has been provided by Instaforex Company – http://www.instaforex.com/
