Forex: USD/CHF Technical Analysis – February Low Under Fire
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- USD/CHF Technical Strategy: Flat
- Support: 0.8776 (Feb 28 low), 0.8750 (38.2% Fib exp.)
- Resistance: 0.8866 (trend line, 23.6% Fib ret.), 0.8921 (38.2% Fib ret.)
The Swiss Franc is reasserting itself against the US Dollar, with prices recoiling from resistance at 0.8866 marked by a falling trend line set from late January and the 23.6% Fibonacci retracement. Near-term support is at 0.8776, the February 28 low, with a break below that targeting the 38.2% Fib expansion at 0.8750. Alternatively, a reversal above resistance aims for the 38.2% retracement at 0.8921.
Prices are too close to relevant support to justify a short trade from a risk/reward perspective. Entering long is premature without a defined reversal signal however. We will continue to wait for an actionable trade setup from the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com