Forex: USD/CHF Technical Analysis – Coiling Around 0.90 Figure
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- USD/CHF Technical Strategy: Flat
- Support: 0.8986 (23.6% Fib exp.), 0.8957 (trend line)
- Resistance: 0.9038 (38.2% Fib exp.), 0.9081 (50% Fib exp.)
The Swiss Franc is coiling into an increasingly narrow triangular consolidation pattern around the 0.90 figure to the US Dollar. A break above the formation’s downward-sloping resistance line (now at 0.9022) targets a double top marked by the January 8 high at 0.9127. Alternatively, a break though support (0.8961) aims for the 0.89 figure.
On balance, risk/reward considerations argue against attempting to take directional bets when prices are so closely wedged between relevant up- and downside technical barriers. We will remain on the sidelines for now, waiting for a defined breakout from congestion to re-evaluate potential opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.