Overview:
USD/CHF is to consolidating in lower range as markets await U.S. non-farm payrolls report. USD/CHF is undermined by broadly weaker demand for safe-haven USD as risk appetite improves. But USD/CHF losses are tempered by positions adjustment before weekend.
Preference:
SHORT positions below 0.935 with 0.928 and 0.925 in sight.
Support Levels:
0.9291-0.9281 band (Thursday's low-Sept. 21 low)
0.925
0.9235 (Sept. 14 reaction low)
0.9191 (May 8 low).
Alternative scenario:
The upside penetration of 0.935 will call for a rebound towards 0.9395 and 0.9415.
Resistance Levels:
0.9394-0.9399 (hour chart-Wednesday's high, matching 200-day moving average)
0.9415
0.9438 (Monday's high)
0.9473 (Sept. 11 high).
Comment:
As long as 0.935 is resistance, look for choppy price action with a bearish bias. Daily chart mixed as MACD bullish, but stochastics in bearish mode.
Ahsan Aslam:
E-mail: ahsan.aslam@analytics.instaforex.com