Forex: USD/CHF Technical Analysis – Reversal Higher in the Works?
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- USD/CHF Technical Strategy: Flat
- Support: 0.8750 (38.2% Fib exp.), 0.8705 (50% Fib exp.)
- Resistance: 0.8863 (trend line)
The Swiss Franc continues to make headway against the US Dollar, with prices edging past the February 28 low at 0.8776. Sellers are now testing the 38.2% Fib expansion at 0.8750, with a break below that targeting the 50% level at 0.8705. Alternatively, a rebound back above 0.8776 sees resistance at a falling trend line set from late January, now at 0.8863.
Prices are too close to relevant support to justify a short trade from a risk/reward perspective. Furthermore, emerging positive RSI divergence hints selling pressure is ebbing and warns a turn higher may be around the corner. We will wait for confirmation of reversal on a daily close above trend line resistance to enter long.
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.