USD/CHF: Key ST Resistance at 0.9145 2012-12-20 |
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USD/CHF is consolidating with bullish bias after hitting seven-and-half month low of 0.9084 on Wednesday. The rate is supported by contagion from weak EUR on CHF; broadly stronger demand for safe-haven USD as risk aversion increases. The corrective rally from Wednesday's bullish hammer candle low at 0.9088 will falter beneath solid resistance at 0.9140. USD bears will look to defend Monday's lower high a 0.9195, and Wednesday's seven-month low at 0.9088 will remain vulnerable while 0.9195 caps. The broader-term downtrend targets are 0.9043 and then the 0.9000 level, and the 2012 low at 0.8931 is also within reach in the long term.
Preference:
Sell below 0.9145 with targets 0.91 and 0.9085 in extension.
Support Levels:
S1 - 0.91
S2 - 0.9084 (Wednesday's low)
S3 - 0.9039 (May 1 low)
Alternative scenario:
Buy above 0.9145 .Above 0.9145 look for further upside with 0.918 and 0.9195 as targets.
Resistance Levels:
R1 - 0.9186-0.9194 band (Tuesday's high-Monday's high)
R2 - 0.9195
R3 - 0.9247 (Friday's high)
Technical Comment:
The pair stands below its resistance and should face further weakness. Daily chart is mixed as MACD is bearish, 5- & 15-day moving averages are falling; but stochastic turned bullish at oversold; bullish hammer candlestick pattern was completed on Wednesday.
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