USD/CHF: Under pressure

Overview:
USD/CHF is consolidating with bearish bias after hitting six-week low of 0.9274 on Thursday. The rate is undermined by CHF demand on buoyant CHF/JPY as weak yen sentiment supports the cross; broadly weaker demand for safe-haven USD amid positive investor risk sentiment. But USD/CHF losses tempered by positions adjustment before weekend. Daily chart is negative-biased as bearish outside-day-range pattern completed on Thursday; MACD and stochastics are bearish; five- and 15-day moving averages are falling.

Recommendation:
Sell below 0.9335 with downside targets at 0.9274 and 0.923.
Support levels:
S1 – 0.9274 (Thursday’s low)
S2 – 0.9230 (Feb. 25 low)
S3 – 0.9182 (Feb. 20 low) . 
Alternative scenario:
Buy above 0.9335 with upside targets at 0.9365 and 0.939.   
Resistance levels:
R1 – 0.9366 (Tuesday’s high)
R2 – 0.94
R3 – 0.9433 (April 5 high)

The material has been provided by InstaForex Company – www.instaforex.com