The USD/CHFis to consolidate in a lower range after hitting a six-month high of 0.9567 on Thursday. CHF sentiment worsened after the Swiss National Bank Thursday reaffirmed its commitment to the 1.2000 euro floor versus the franc and warned that Switzerland faced contunuous sluggish economic growth. The USD/CHF weighed by broadly weaker demand for a safe haven USD amid positive global risk sentiment; CHF demand for a weaker EUR/CHF cross; profit taking on USD longs before weekend. Data focus on Swiss February PPI and Import Price Index.
Recommendation:
Sell below the pivot point at 0.9475 with downside targets at 0.9385 and 0.935.
Support levels:
S1 - 0.9386 (March 5 low)
S2 - 0.935 (March 1 low)
S3 - 0.9325
Alternative scenario:
Buy above 0.9475 with targets at 0.951 and 0.955.
Resistance levels:
R1 - 0.9510
R2 - 0.955
R3 - 0.9567 (Thursday's high)
Technical comment:
The daily chart is still positive-biased as MACD is bullish, while Stochastics stay elevated at overbought.