Forex: USD/CHF Technical Analysis – Stalling Below 0.89 Figure
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- USD/CHF Technical Strategy: Flat
- Support: 0.8826 (channel top), 0.8806 (23.6% Fib ret.)
- Resistance: 0.8873 (38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar reboundedas expected against the Swiss Franc, seemingly confirming an upside breakout with a push through the top of a falling channel set from late January. Buyers are now testing resistance at 0.8873, the 38.2% Fibonacci retracement, with a break above targeting the 50% level at 0.8927. Alternatively, a reversal back below the channel top (now at 0.8826) eyes the 23.6% Fib at 0.8806.
Risk/ reward considerations argue against entering long with prices squarely at near-term resistance. On the other hand, the short side looks unattractive without an actionable reversal signal. With that in mind, we will continue to stand aside and wait for a more attractive setup to emerge.
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.