Forex: USD/CHF Technical Analysis – Foothold Above 0.88 Reclaimed
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- USD/CHF Technical Strategy: Flat
- Support: 0.8776 (Feb 28 low)
- Resistance: 0.8848-66 (Dec’13 bottom, 23.6% Fib ret.), 0.8898 (trend line)
The US has managed to claw back some lost ground against the Swiss Franc, with prices reclaiming a foothold above the 0.88 figure.Resistance is in the 0.8848-66 area, marked by the December 2013 closing bottom and the 23.6% Fibonacci retracement. A break above this barrier exposes a falling trend line at 0.8898 and the 38.2% level at 0.8921. Near-term support is at 0.8776, the February 28 low.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, a short position would presume resistance will necessarily hold, which is a baseless assumption thus far. We will remain flat for now until the pair offers a more attractive setup.
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.