Forex: USD/CHF Technical Analysis – Channel Top in Focus
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- USD/CHF Technical Strategy: Flat
- Support: 0.8806 (23.6% Fib ret.), 0.8765 (Wedge top)
- Resistance: 0.8850-73 (channel top, 38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar moved higher against the Swiss Francas expected, seemingly putting in a Falling Wedge chart pattern. An alternative interpretation of current positioning sees the possibility that a Falling Channel is the dominant pattern in play however. The possibility of such a scenario makes argues against entering long for now until confirmation of an upside breakout is secured.
Near-term resistance is in the 0.8850-73 area, marked by the channel top and the 38.2% Fibonacci retracement. A break above that exposes the 50% level at 0.8927. Alternatively, a drop below support at the 23.6% Fib at 0.8806 would expose the wedge top at 0.8765.
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.