FX.co ★ USD/CHF: Upside

Overview:
USD/CHFis to consolidate with bullish bias after hitting three-and-a-half month high of 0.9462 on EBS Friday. Supported by positive USD sentiment after a surprising rise in US ISM Manufacturing PMI to 54.2 in February from 53.1 in January (vs forecast of a drop to 52.5); unexpected rise in final University of Michigan February Consumer Sentiment Index to 77.6 from preliminary reading of 76.3 (vs flat forecast); upbeat US data contrasted with gloomy data from the Eurozone and UK boosting allure of the dollar.

Recommendation:
Buy above 0.9375 with the first target in sight at 0.9435 and the second target after the breach of first at 0.9465.
Resistance Levels:
R1 - 0.9435
R2 - 0.9462 (Friday's high); breach would target
R3 - 0.9491 (Nov. 16 high).
Alternative scenario:
Sell below 0.9375 and look for the first target at 0.9353 and the second target at 0.931.
Support Levels:
S1 - 0.9352 (Friday's low)
S2 - 0.931
S3 - 0.9280 (Thursday's low)

Technical Comment:
The daily chart is positive-biased as MACD is bullish, stochastics stays elevated at overbought, five- & 15-day moving averages are rising.