Forex: USD/CHF Technical Analysis – Franc May Extend Advance
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- USD/CHF Technical Strategy: Flat
- Support: 0.8844 (23.6% Fib exp.), 0.8777 (38.2% Fib exp.)
- Resistance: 0.8903 (Apr 4 high)
The Swiss Franc launched a recovery against the US Dollar as expected after prices put in a Shooting Star candlestick near the 0.89 figure. The pair has now completed a bearish Evening Star pattern, warning of continued weakness ahead. Near-term support is at 0.8844, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.8777. Initial resistance is at 0.8903, the April 4 swing high.
Risk/reward considerations argue against entering short with prices squarely at relevant support. On the other hand, taking up the long side looks premature absent a defined bullish reversal signal. With that in mind, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com