Forex: USD/CHF Technical Analysis – Wedge Breakout Completed
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- USD/CHF Technical Strategy: Flat
- Support: 0.8806 (23.6% Fib ret.), 0.8779 (Wedge top)
- Resistance: 0.8873 (38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar turned higher as expected having found a bottom above the 0.87 figure against the Swiss Franc, completing a Falling Wedge chart formation. Sellers now aim to challenge the 38.2% Fibonacci retracement at 0.8873, with a break above that targeting the 50% level at 0.8927. Alternatively, a reversal below the 23.6% Fib at 0.8806 aims for the Wedge top at 0.8779.
A 20-day ATR reading at 55 pips suggests a long entry price no higher than 0.8818 is needed to maintain acceptable risk/reward parameters. That puts prices too close to relevant resistance to justify a trade at current levels. We will stand aside, monitoring the pair for a buying opportunity.
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.