Overview:
USD/CHF is in a range-trade. The rate is supported by contagion from weak euro. But USD/CHF upside is limited by negative USD sentiment; CHF demand on soft EUR/CHF cross. The rate is undermined by negative risk sentiment on news of Cyprus bank-deposit levy. Daily chart is turning negative as stochastics is falling from overbought; MACD is staging bearish crossover against its exponential moving average; bearish parabolic stop-and-reverse signal was hit at 0.9428 on Friday.
Recommendation:
Sell below 0.9476 with keep in view the downside targets at 0.9377 and 0.9352 in extension.
Support levels:
S1 - 0.9377 (Friday's low)
S2 - 0.9352 (March 1 low)
S3 - 0.9280 (Feb. 28 low, near 55-day and 100-day moving averages).
Alternative scenario:
Buy above 0.9476 with first target at 0.9510 and second target at 0.9566.
Resistance levels:
R1 - 0.9510
R2 - 0.9567 (Thursday's six-month high)
R3 - 0.9608 (Sept. 5 high)