Forex: USD/CHF Technical Analysis – Range Continues to Hold
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- USD/CHF Technical Strategy: Flat
- Support: 0.8848 (Dec’13 closing bottom), 0.8798 (Dec 27 low)
- Resistance: 0.8914-21 (trend line, 23.6% Fib ret.), 0.8966 (38.2% Fib ret.)
Prices are consolidating above support at 0.8848, the December 2013 closing bottom. Near-term resistance is at 0.8921, the 23.6% Fibonacci retracement, and a falling trend line set from late January (0.8914). Breaking above the latter barrier aims for 0.8966, the 38.2% level. 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