Forex: USD/CHF Technical Analysis – Waiting for Confirmation
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- USD/CHF Technical Strategy: Flat
- Support: 0.8964 (trend line), 0.8900
- Resistance: 0.9013 (trend line), 0.9127 (Jan 8 high)
The Swiss Franc continues to oscillate in a narrow consolidation pattern around the 0.90 figure to the US Dollar. A break below upward-sloping support – now at 0.8964 – aims for the 0.89 figure and falling trend line resistance-turned-support at 0.8871. Alternatively, a push above resistance at 0.9013 aims for the January 8 high at 0.9127.
Risk/reward considerations argue against taking a trade at current levels as the pair treads water in the immediate vicinity of near-term support and resistance levels. We will continue to wait on the sidelines for now, looking for a clearly-defined breakout from consolidation to consider a directional bet.
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.