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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9538, 0.9462, 0.9367
- Resistance: 0.9614, 0.9709, 0.9767
The US Dollar continues to sink against the Swiss Franc, with prices registering their longest losing streak in 11 months. Near-term support is at 0.9538, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.9462-90 area (61.8% level, April 3 low). Alternatively, a turn above the 38.2% Fib at 0.9614 clears the way for a test of the 23.6% level at 0.9709.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
