USD/CHF: Under pressure
USD/CHF continues to range-trade. The rate is supported by CHF-funded carry trades amid improved investor risk sentiment. But USD/CHF gains tempered by CHF demand on retreating EUR/CHF cross. Daily chart is mixed as MACD is bullish, but stochastics turned bearish at overbought; inside-day-range pattern was completed on Monday. Consolidation from last Friday’s three-month high at 0.9389 risks further USD weakness towards 0.9215. Weakness during Tuesday’s Asian session completed a bear pennant continuation pattern on the 60-minute chart, although the bear wave is considered corrective in nature. Keeping support at 0.9265 intact would prompt a strong rally back to 0.9347 and last Friday’s 0.9389 high, and broader-term uptrend targets at 0.941 and the previous lower reaction high at 0.9513 would then be opened. Only movement below 0.926 would concern USD bulls.
Sell below 0.9345 with targets at 0.926 and 0.9215 in extension.
S1 – 0.926
S2 – 0.9215
S3 – 0.9175
Buy above 0.9345. Above 0.9345 look for further upside with 0.939 and 0.941 as targets.
R1 – 0.9389 (Friday’s high)
R2 – 0.941
R3 – 0.9433 (200-day moving average)
The RSI is bearish and calls for further downside.
The material has been provided by Instaforex Company – instaforex.com