USD/CHF Technical Analysis – Franc Aims to Extend Gains
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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.), 0.8808 (Triangle top)
The US Dollar fell expected as expected against the Swiss Franc after prices a bearish Evening Star candlestick pattern. Prices have now completed a bearish Triangle formation, arguing for continued losses. Initial support is at 0.8723, the 50% Fibonacci expansion, with a break below that exposing the 61.8% level at 0.8669. Alternatively, a reversal back above the 38.2% Fib at 0.8777 on a daily closing basis aims for the Triangle top at 0.8808.
Entering short at current levels looks unattractive from a risk/reward perspective with prices in close proximity to relevant support. On the other hand, the absence of a defined upward reversal signal argues against taking up the long side. We will remain flat for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.