Forex: USD/CHF Technical Analysis – Support Above 0.89 Holding
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- USD/CHF Technical Strategy: Flat
- Support: 0.8905 (38.2% Fib exp.), 0.8828 (50% Fib exp.)
- Resistance: 0.8978 (trend line), 0.9001 (23.6% Fib exp.)
The Swiss Franc broke out of a tight consolidation pattern last week, with USD/CHF testing support at 0.8905 marked by the 38.2% Fibonacci expansion. A daily close below this boundary targets the 0.50% Fib at 0.8828. Near-term trend line resistance-turned-support is now at 0.8978, followed by the 23.6% expansion at 0.9001.
Entering short looks unattractive from a risk/reward perspective as prices hover just a hair above near-term support. A long position would presuppose a bounce without any meaningful evidence pointing to such an outcome in the chart setup. As such, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com