FX.co ★ USD/CHF : Bullish Bias above 0.9145

Overview:
USD/CHF - to trade with risks skewed higher. Supported by contagion from weak EUR on CHF, there is broadly stronger demand for safe-haven USD as risk aversion increases. USDCHF likely to trade in a higher range this week as the daily stochastic reading has turned bullish at the oversold level. Resistance is at the Dec. 17 high of 0.9194; a breakthrough would expose the upside to the Dec. 13 high of 0.9245, and then to the 55-day moving average, now at 0.9319. USD/CHF medium-term outlook is negative as the five- and 15-week moving averages are declining. The currency pair may test the 0.8927 support; a breakthrough would open the way down to the Oct. 27, 2011 low of 0.8566 in the weeks ahead.
Preference:
Buy above 0.9145 with 0.918 and 0.9195 as next targets.
Resistance Levels:
0.9179 (Friday's high)
0.9186-0.9194 band (Tuesday's high-Dec. 17 high)
0.9247 (Dec. 14 high)
Alternative scenario:
Sell below 0.9415. The downside penetration of 0.9145 will call for a slide towards 0.912 and 0.9105.
Support Levels:
0.912
0.9105 (Friday's low)
0.9080 (Thursday's seven-and-a-half low)
Technical Comment:
The break above 0.9145 is a positive signal that has opened a path to 0.918. Daily chart mixed as MACD bearish, but stochastic turned bullish at oversold.