Overview:
USD/CHF is trading with risks skewed higher. However, the pair is underpinned by positive USD sentimen and broadly stronger demand for safe-haven USD as risk appetite falls amid renewed concerns about Europe's debt problems.
Preference:
Short positions are placed below 0.935 with targets at 0.9295 and 0.9265 in extension.
Support Levels:
0.9295 *** intraday support
0.9265 (Friday's low)
0.9235 (Sept. 14 reaction low)
0.9191 (May 8 low).
Alternative scenario:
Above 0.935 look for further upside with 0.9375 and 0.9395 as targets.
Resistance Levels :
0.9375 *** intraday Resistance
0.9399 (Wednesday's high, near 200-day moving average)
0.9438 (Oct. 1 high)
0.9473 (Sept. 11 high).
Comment:
As long as 0.935 serves as resistance level, look for choppy price action with a bearish bias. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.