Overview:
USD/CHF is consolidating. The rate is undermined by negative USD sentiment; USD/CHF weighed by weaker USD sentiment after bigger-than-expected drop in U.S. ISM non-manufacturing PMI to 54.4 in March from 56 in February (vs. 55.8 forecast), and ADP reporting smaller-than-expected 158,000 increase in U.S. private-sector jobs in March (vs. +192,000 forecast). CHF demand on buoyant CHF crosses vs. major currencies. But USD/CHF losses tempered by caution ahead of Friday's U.S. non-farm payrolls report. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Wednesday; MACD and stochastics are in bearish mode.
Recommendation:
Buy above 0.9465 with upside targets at 0.952 and 0.952.
Resistance levels:
R1 - 0.9520-0.9526 band (Wednesday's high-Monday's high)
R2 - 0.9547-0.9553 band (March 28 high-March 27 high)
R3 - 0.9567 (six-month high hit March 14)
Alternative scenario:
Sell below 0.9465 with downside targets at 0.9438 and 0.9412.
Support levels:
S1 - 0.9438 (Wednesday's low)
S2 - 0.9412 (200-day moving average)
S3 - 0.9353 (March 25 low)