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- USD/CHF Technical Strategy: Flat
- Support: 0.8742 (Apr 11 low)
- Resistance:0.8802 (23.6% Fib ret.), 0.8839 (38.2% Fib ret.)
The US Dollar is attempting to launch a recovery against the Swiss Franc after prices found support above the 0.87 figure. Prices bounced to test initial resistance at 0.8802, the 23.6% Fibonacci expansion, with a break above that aiming for the 38.2% level at 0.8839. Near-term support is at 0.8742, the April 11 low.
Risk/reward considerations argue against entering a long position with prices sitting squarely at resistance. The absence of a defined bearish reversal signal likewise warns against taking up the short side. With that in mind, we will remain on the sidelines until an actionable trade setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com