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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9343, 0.9076, 0.8793
- Resistance: 0.9498, 0.9781, 1.0239
The US Dollar may be preparing to turn lower against the Swiss Franc after producing a Bearish Engulfing candlestick pattern. A daily close below resistance-turned-support at 0.9343, February 2 low, exposes the 23.6% Fibonacci expansion at 0.9076. Alternatively, a turn above the 61.8% Fib retracement at 0.9498 opens the door for a test of the 76.4% threshold at 0.9781.
An actionable trade setup is absent for now. On one hand, the Engulfing pattern setup has not been technically invalidated. On the other, a swift recovery to near-term resistance has cast doubt on downside follow-through. With that in mind, we will remain flat for the time being.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
