USD/CHF: Upside Prevails
USD/CHF is trading with risks skewed higher. The rate is supported by contagion from soft EUR sentiment on CHF. But USD/CHF gains tempered by broadly weaker demand for save haven USD, as investor risk appetite improves. Daily chart is positive-biased as MACD is in bullish mode, stochastic is turning bullish. The Jan. 4 reaction high at 0.9303 remains the focus for the rally from Tuesday’s 0.9201 low. A push above Wednesday’s high at 0.9273 would provide the signal for a full retracement to the 0.9303 high, threatening further gains towards 0.9345 and the Dec. 7 intra-wave lower high at 0.9383 in the process. Failure to force a break above 0.9303 would prompt a corrective setback towards 0.9201, but only as part of a broader bullish continuation pattern.
Buy above 0.922 with 0.9285 and 0.93 in sight.
R1 – 0.9285 (Monday’s high)
R2 – 0.9302 (Friday’s high)
R3 – 0.9345
Sell below 0.922. The downside breakout of 0.922 will open the way to 0.9195 and 0.9165.
S1 – .9198 (Tuesday’s low)
S2 – 0.9171 (Jan. 3 low)
S3 – 0.9135
The pair has broken above a declining trendline and remains on the upside, while the RSI remains well directed.
The material has been provided by Instaforex Company – instaforex.com