Forex: USD/CHF Technical Analysis – Chart Offers Conflicting Cues
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- USD/CHF Technical Strategy: Flat
- Support: 0.8819 (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 but technical positioning appears conflicted on where prices are likely to go from here. On one hand, a pullback from resistance at 0.8873, the 38.2% Fibonacci retracement, appears corrective in the context of an upside breakout through the top of a falling channel set from late January (now at 0.8819). That seems to argue for a long position.
However, prices are likewise showing a bearish Evening Star candlestick pattern, which may precede a reversal lower in line with the dominant trend established since mid-September 2013. On balance, we will opt to stand aside for now, waiting for the chart setup to offer greater clarity before committing to a directional bias.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com