Forex: USD/CHF Technical Analysis – Attempting to Build Higher
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- USD/CHF Technical Strategy: Flat
- Support: 0.8848 (Dec’13 closing bottom), 0.8820 (channel floor)
- Resistance: 0.8908 (14.6% Fib exp.), 0.8940 (23.6% Fib exp.)
Prices are trying to launch a rebound having found support at 0.8848, the December 2013 closing low. A daily close above the 14.6% Fibonacci expansion at 0.8908 initially targets the 23.6% level at 08940. Alternatively, a reversal below 0.8848 targets a falling channel bottom at 0.8820.
The pair is trading too close to near-term resistance to make a long position actionable from a risk/reward perspective. Meanwhile, attempting to enter a short trade lacks confirmation that resistance will hold. As such, we will continue to stand on the sidelines for now until an actionable setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com