Overview:
USD/CHF continues to range-trade. The rate is undermined by broadly weaker demand for safe-haven USD as risk appetite improves; (S&P rose 0.16% overnight) after surprise rise in U.S. ISM non-manufacturing composite index to 54.7 last month from 54.2 in October (vs. forecast for drop to 53.5), unexpected 0.8% increase in U.S. October factory orders (vs. forecast for 0.1% decline), better-than-expected U.S. 3Q non-farm productivity (came in at +2.9% vs. +2.8% forecast and initial estimate of +1.9%). But USD/CHF downside is limited after Credit Suisse's announced on Monday that it would implement negative interest rates on interbank accounts starting next week.
Data focus:
06:45 GMT Swiss November unemployment
08:15 GMT Swiss November CPI.
Preference:
Buy above 0.925 with targets 0.93 and 0.932.
Resistance Levels:
R1 - 0.9299-0.9303 (Wednesday's high-Nov. 29 high)
R2 - 0.932
R3 - 0.9341 (Nov. 28 high)
Alternative scenario:
Sell below 0.924. The downside breakout of 0.924 will open the way to 0.921 and 0.9175.
Support Levels:
S1 - 0.9210 (Oct. 17 reaction low)
S2 - 0.9175
S3 - 0.9039 (May 1 low)
Technical Comment:
A support base at 0.924 has formed and has allowed for a temporary stabilisation. Daily chart is still negative-biased as MACD and stochastic are bearish, although latter is at oversold; five-day moving average is below 15-day MA and falling.