To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8829 (50% Fib exp.), 0.8799 (38% Fib exp.)
- Resistance: 0.8859-64 (61.8% Fib exp., trend line), 0.8896 (76.4% Fib exp.)
The US Dollar rose for a fourth consecutive day against the Swiss Franc after reversing as expected having put in a bullish Piercing Line candlestick pattern. Prices have now overcome key resistance at a falling trend line set from September 2013, suggesting a significant reversal is in progress. The bulls are aiming to challenge the 76.4% Fibonacci expansion at 0.8896, with a break above that exposing the 100% level at 0.8956. Alternatively, a reversal below the 61.8% Fib at 0.8859 eyes the 50% expansion at 0.8829.
At just 38 pips, the available trading range is too narrow to justify entering a trade given a 20-day ATR reading of 46 and a trading strategy utilizing stops triggered on a daily closing basis. We will remain on the sidelines for now, waiting for a more actionable opportunity to emerge.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
