Overview:
USD/CHF is consolidating with bearish bias after hitting five-week low of 0.9304 on Tuesday. The rate is undermined by negative USD sentiment; broadly weaker demand for safe-haven USD amid positive investor risk appetite. But USD/CHF losses tempered by lower-than-expected Swiss March CPI (came in at -0.6% on year vs. -0.5% forecast); CHF sales on buoyant EUR/CHF, AUD/CHF, and NZD/CHF crosses. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Tuesday; MACD and stochastics are in bearish mode; five-day moving average is below 15-day MA and falling.
Recommendation:
Sell below 0.9365 with downside targets at 0.928 and 0.923.
Support levels:
S1 - 0.9280 (Feb. 28 low)
S2 - 0.9230 (Feb. 25 low)
S3 - 0.9182 (Feb. 20 low).
Alternative scenario:
Buy above 0.9365 with upside targets at 0.9391 and 0.9433.
Resistance levels:
0.9391 (Tuesday's high)
0.9433 (Friday's high)
0.9526 (Thursday's high)