Forex: USD/CHF Technical Analysis – Franc Falls to 5-Week Low
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- USD/CHF Technical Strategy: Flat
- Support: 0.8873 (38.2% Fib ret.), 0.8806 (23.6% Fib ret., channel top)
- Resistance: 0.8927 (50% Fib ret.), 0.8981 (61.8% Fib ret.)
The US Dollar continued to move higher against the Swiss Franc having initiated a recovery as expected, hitting the highest level in five weeks. The bulls have now cleared resistance at 0.8873, the 38.2% Fibonacci retracement to expose the 50% level at 0.8927. A further push beyond that targets the 61.8% Fib at 0.8981. Alternatively, a reversal back below 0.8873 aims for the 23.6% retracement at 0.8806.
Risk/reward considerations argue against entering long while prices trade so close to relevant resistance. On the other hand, a short position lacks an actionable downward reversal signal to suggest that resistance will hold. As such, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com