Forex: USD/CHF Technical Analysis – Franc Drops Most in a Month
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- USD/CHF Technical Strategy: Flat
- Support: 0.8848-66 (Dec’13 bottom, 23.6% Fib ret.), 0.8776 (Feb 28 low)
- Resistance: 0.8888 (trend line), 0.8921 (38.2% Fib ret.)
The US Dollar continued to recover against the Swiss Franc yesterday, producing the strongest upward push in a month. Prices have cleared resistance in the 0.8848-66 areamarked by the December 2013 closing bottom and the 23.6% Fibonacci retracement. Buyers now aim to challenge falling trend line at 0.8888, with a break above that targeting the 38.2% level at 0.8921. A reversal back below 0.8848 sees the next year of 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 seems premature absent a defined reversal signal. We will remain flat for now.
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.