FX.co ★ USD/CHF: Under Pressure

Overview:
USD/CHF is consolidating with bearish bias after hitting seven-month low of 0.9145 on EBS this morning. The rate is weighed by spillover from EUR strength on CHF. Analysts said optimistic data from the U.S. and China gave the markets a respite from fears of the U.S. fiscal cliff. The trend for USD/CHF remains negative with a target of 0.91; although in an oversold market we could see small corrections up to 0.9250. The bearish trend will only be broken when USD/CHF climbs above 0.9275.

Preference:
Sell below 0.9205 with 0.916 and 0.9135 in sight.
Support Levels:
S1 - 0.916
S2 - 0.9135
S3 - 0.91
Alternative scenario:
Buy above 0.9250. The upside breakout of 0.9205 will open the way to 0.9235 and 0.926.
Resistance Levels:
R1 - 0.9235
R2 - 0.926
R3 - 0.93
Technical Comment:
The pair stands below its new resistance and remains under pressure. Daily chart is negative-biased as MACD and stochastic are bearish, although latter is at oversold; five- & 15-day moving averages are falling.