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Talking Points:

  • 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.

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dailyclassics_usd-chf_body_Picture_11.png, USD/CHF Technical Analysis – Resistance Met Above 0.88

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com