Forex: USD/CHF Technical Analysis – Support Above 0.89 Tested
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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.)
Prices are testing support at 0.8902, the January 24 low. A bounce from here sees trend line resistance in the 0.8980-0.9014 area. Alternatively, a turn through support targets the December 2013 closing bottom at 0.8848.
Current positioning does not offer an actionable trade setup. On one hand, a pair of indecision candles above support doesn’t yield enough confirmation to enter long. On the other, a confirmed break lower on a daily closing basis is needed to justify a short position. As such, we will remain on the sidelines for the time being.
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.