Overview:
USD/CHF is consolidating in higher range after hitting two-week high of 0.9386 on Friday. The rate is undermined by broadly weaker demand for safe-haven USD as risk tolerance improves.
Preference:
Buy above 0.933 with targets 0.9385 and 0.94 in extension.
Resistance Levels:
R1 - 0.9386 (Friday's high)
R2 - 0.94
R3 - 0.9431-0.9438 (Oct. 10 high-Oct. 1 high)
Alternative scenario:
Sell below 0.933 and look for further downside with 0.931 and 0.9285 as targets.
Support Levels:
S1 - 0.931
S2 - 0.9286 (Thursday's low)
S3 - 0.9255 (Tuesday's low)
Technical Comment:
A support base at 0.933 has formed and has allowed for a temporary stabilization. Daily chart is positive-biased as MACD & stochastics are bullish; five-day moving average is above 15-day MA and rising.