Forex: USD/CHF Technical Analysis – Direction Cues Still Absent
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- USD/CHF Technical Strategy: Flat
- Support: 0.8967 (trend line), 0.8902-39 (Jan 24, Feb 11 lows)
- Resistance: 0.9024 (trend line), 0.9081 (Feb 3 high)
The Swiss Franc continues to tread water in an increasingly narrow consolidation pattern around the 0.90 figure. A break above resistance, now at 0.9024, exposes the February 3 high at 0.9081. Alternatively, a reversal below support at 0.8967 on a daily closing basis aims for swing lows at 0.8939 and 0.8902.
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.