Forex: USD/CHF Technical Analysis – Franc Soars to 2-Year High
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- USD/CHF Technical Strategy: Flat
- Support: 0.8770 (50% Fib exp.), 0.8733 (61.8% Fib exp.)
- Resistance: 0.8808 (38.2% Fib exp.), 0.8848-54 (Dec’13 closing bottom, 23.6% Fib exp.)
Prices crashed through support at 0.8848, the December 2013 closing bottom. Sellers are now testing the 50% Fibonacci expansion at 0.8770, with a break below that exposing the 61.8% level at 0.8733. Alternatively, a reversal above the 38.2% Fib at 0.8808 targets the 0.8848-54 region.
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.