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- USD/CHF Technical Strategy: Flat
- Support: 0.8723 (50% Fib exp.), 0.8669 (61.8% Fib exp.)
- Resistance:0.8777 (38.2% Fib exp), 0.8844 (23.6% Fib exp.)
The US Dollar is attempting to find its feet after five consecutive days of losses against the Swiss Franc in the aftermath of an expected reversal near 0.89. Prices are retesting support-turned resistance at 0.8777, the 38.2%Fibonacci expansion, with a break above that targeting the 23.6% expansion at 0.8844. Near-term support is at 0.8723, the 50% level. A breach below this boundary aims for the 61.8% Fib at 0.8669.
USD/CHF lost nearly 2 percent last week. Most analogous episodes of comparable magnitude in the past year have been followed by significant recoveries. While this certainly doesn’t guarantee a lasting upswing and the chart does not show a discrete reversal signal, we are nonetheless leery to chase the pair downward at this point.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com