Forex: USD/CHF Technical Analysis – Waiting to Confirm Wedge
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support: 0.8704 (Wedge bottom)
- Resistance: 0.8806 (23.6% Fib ret., Wedge top), 0.8873 (38.2% Fib ret.)
The US Dollar may be readying to turn higher against the Swiss Franc as prices carve out a falling Wedge chart formation. The setup hints at ebbing downward momentum and often precedes a reversal higher. A break above resistance at 0.8806, the intersection of the Wedge top and the 23.6% Fibonacci retracement, exposes the 38.2% level at 0.8873. Wedge support is now at 0.8704.
An Inverted Hammer candlestick above Wedge support suggests a turn higher may be around the corner but confirmation is absent for the time being. We will continue to stand aside for now, looking for a break above the Wedge top on a daily closing basis to initiate a long position.
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.