Forex: USD/CHF Technical Analysis – Bulls Try to Take Initiative
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- USD/CHF Technical Strategy: Flat
- Support: 0.8806 (23.6% Fib ret., channel top)
- Resistance: 0.8873 (38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar began to recovery against the Swiss Franc as expected and more of the same appears to be likely in the period ahead. Conflicted positioning that has plagued the pair recently seems to be starting to tilt in favor of the bulls after prices bounced from falling channel resistance-turned-support, lending credence to last week’s upside breakout. A close above the 38.2% Fibonacci retracement at 0.8873 exposes the 50% level at 0.8927. Near-term support is at 0.8806, the intersection of the channel top and the 23.6% retracement.
At this point, prices are too close to relevant resistance to justify a long position from a risk/reward perspective. We will continue to stand aside, looking for the pair to produce a more attractive trading opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com