Forex: USD/CHF Technical Analysis – Downtrend Resistance Under Fire
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support: 0.8848-66 (Dec’13 bottom, 23.6% Fib ret.), 0.8776 (Feb 28 low)
- Resistance: 0.8880 (trend line), 0.8921 (38.2% Fib ret.)
Prices stalled at trend line resistance set from late January after the US Dollar produced its strongest push upward in a month against the Swiss Franc. A break this barrier (now at 0.8880) initially exposes 38.2% Fibonacci retracement at 0.8921. Support is in the 0.8848-66 area,marked by the December 2013 closing bottom and the 23.6% level, with a break below that eyeing the February 28 lowat 0.8776.
The pair is trading 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.