Forex: USD/CHF Technical Analysis – Treading Water Below 0.89
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- USD/CHF Technical Strategy: Flat
- Support: 0.8848 (Dec’13 closing bottom), 0.8798 (Dec 27 low)
- Resistance: 0.826 (23.6% Fib ret.), 0.8949 (trend line)
Prices are consolidating above support at 0.8848, the December 2013 closing bottom. Near-term resistance is at 0.8926, the 23.6% Fibonacci retracement, with a break above that exposing a falling trend line set from late January (now at 0.8949). Alternatively, a break below support aims for the December 27 low at 0.8798.
Narrow range-bound trading conditions do not offer a clear-cut directional trade setup. From a risk/reward perspective, prices are too close to support to justify a short. On the other hand, a defined bullish reversal signal is absent for now. We will remain flat until something actionable materializes.
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.