Forex: USD/CHF Technical Analysis – Franc May Rebound vs. Dollar
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- USD/CHF Technical Strategy: Flat
- Support: 0.8873 (38.2% Fib ret.), 0.8806 (23.6% Fib ret.)
- Resistance: 0.8927 (50% Fib ret.), 0.8981 (61.8% Fib ret.)
The US Dollar may be readying to correct lower against the Swiss Franc having initiated a recovery near the 0.87 figure as expected. A Shooting Star candlestick below resistance at 0.8927, the 50% Fibonacci retracement, warns of upside indecision and may precede near-term weakness. Near-term support is at 0.8873, the 38.2% level, with drop below that exposing the 23.6% Fib at 0.8806. Alternatively, a breach of resistance on a daily closing basis targets the 61.8% retracement at 0.8981.
Prices are too close to relevant resistance to justify entering long from a risk/reward perspective. On the other hand, a Shooting Star is not a sufficiently significant reversal signal to take up the short side without further confirmation.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