USD/CHF: Support around 0.912
Overview:
USD/CHF is trading with risks skewed higher. Swiss markets are closed today for New Year’s Eve. USD/CHF is underpinned by broadly stronger demand for safe-haven USD as investor risk aversion increases amid fears over U.S. fiscal cliff. A support base at 0.912 has formed and has allowed for a temporary stabilisation. Long positions above 0.9120 are suggested with targets at 0.9165 and 0.9180 in extension. Below 0.9120 look for further downside with 0.9100 and 0.9090 as targets.
Preference:
Buy above 0.912 with targets 0.9165 and 0.918 in extension.
Resistance Levels:
R1 – 0.9165
R2 – 0.9181 (Friday’s high)
R3 – 0.9194 (Dec. 17 high)
Alternative scenario:
Sell below 0.912. Below 0.912 look for further downside with 0.91 and 0.909 as targets.
Support Levels:
S1 – 0.9115 (Friday’s low)
S2 – 0.9092 (Thursday’s low)
S3 – 0.9080 (seven-and-a-half month low hit Dec. 20)
Technical Comment:
A support base at 0.912 has formed and has allowed for a temporary stabilisation. Daily chart is mixed as MACD is in bearish mode; but stochastic turning bullish, five-day moving average is meandering sideways.
The material has been provided by Instaforex Company – instaforex.com
