USD/CHF: Under pressure

Overview:
USD/CHF is trading with risks skewed lower. The rate is undermined by CHF demand on retreating EUR/CHF cross; profit-taking on USD-longs and undermined by amid decreased risk appetite (VIX fear gauge rose 6.14% to 12.27, S&P fell 0.24% overnight); profit-taking on USD-longs after extended dollar advance. Daily chart is mixed as MACD is bullish, but stochastics has turned bearish at overbought.
Recommendation: 
Sell below the pivot point 0.9505 with downside targets at 0.9433 and 0.9398.
Support levels: 
S1 – 0.9433 (Tuesday’s low)
S2 – 0.9406-0.9398 band (Thursday’s low-March 6 low) 
S3 – 0.9386 (March 5 low) 
Alternative scenario: 
Buy above 0.9505 and look for upside targets at 0.955 and 0.9608. 
Resistance levels: 
R1 – 0.9550 (Friday’s six-month high) 
R2 – 0.9608 (Sept. 5 high) 
R3 – 0.9634 (Aug. 28, 2012 high)  

The material has been provided by InstaForex Company – www.instaforex.com

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