USD/CHF: Upside Prevails
USD/CHF has consolidated in higher range after hitting eight-month low of 0.9075 on Wednesday. The rate is supported by contagion from weak EUR on CHF. But USD/CHF gains tempered by broadly weaker demand for safe-haven USD amid surge in investor risk appetite. Daily chart is positive-biased as MACD and stochastic are in bullish mode; bullish hammer candlestick pattern was completed on Wednesday. The RSI is bullish and calls for further advance. It is recommended to take long positions above 0.9165 with targets at 0.922 and 0.9245 in extension. Below 0.9165 look for further downside with 0.914 and 0.911 as targets.
Buy above 0.9165 with targets 0.922 and 0.9245 in extension.
R1 – 0.922
R2 – 0.9247 (Dec. 14 high)
R3 – 0.9275 (Dec. 13 high)
Sell below 0.9165. Below 0.9165 look for further downside with 0.914 and 0.911 as targets.
S1 – 0.914
S2 – 0.911
S3 – 0.9075 (Wednesday’s low); breach would reinstate near-term negative bias, exposing downside to 0.9039 (May 1 low), then 0.8998 (April 2 low) and 0.8927 (Feb. 24 low).
The pair has broken above a strong intraday resistance which now acts as a support, further advance is expected as the RSI is well directed and stands below its overbought area.
The material has been provided by Instaforex Company – instaforex.com