FX.co ★ USD/CHF: Downside Prevails

Overview:
USD/CHF is consolidating in lower range after hitting six-week low of 0.9243 on Friday. The pair is supported by broadly stronger demand for safe-haven USD as risk tolerance decreases; contagion from soft EUR on CHF; lower-than-expected Swiss November KOF economic indicator of 1.5 (vs. 1.6 forecast). The rate is undermined by subdued investor risk appetite as worries over U.S. fiscal cliff linger; increased pressure on the European Central Bank to ease monetary policy further at its monthly meeting Thursday after euro-zone unemployment rate rose to record 11.7% in October.
Preference:
Short positions below 0.927 with targets 0.924 and 0.921 in extension.
Support Levels:
S1 - 0.9243 (Friday's low)
S2 - 0.9210 (Oct. 17 reaction low)
S3 - 0.9191 (May 8 low)
Alternative scenario:
Buy above 0.927. Above 0.927 look for further upside with 0.9285 and 0.9305 as targets.
Resistance Levels:
R1 - 0.9285 (Friday's high)
R2 - 0.9303 (Thursday's high)
R3 - 0.9341 (Wednesday's high)
Technical Comment:
The pair is trading in a bearish channel. Daily chart is still negative-biased as MACD and stochastic are bearish, although latter is at oversold.