USD/CHF Technical Analysis – Rally Pauses at April Top
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support: 0.8859 (61.8% Fib exp.), 0.8829 (50% Fib exp.)
- Resistance: 0.8896-0.8914 (76.4% Fib exp., Apr 4 close), 0.8956 (100% Fib exp.)
The US Dollar paused to consolidate having reversed upward as expected against the Swiss Franc after forming a bullish Piercing Line candlestick pattern. Prices overcame resistance at a falling trend line set from September 2013 to challenge the 0.8896-0.8914 area, marked by the 76.4% Fibonacci expansion and the April 4 close. A break above this barrier targets the 100% level at 0.8956. Alternatively, a reversal below the 61.8% Fib at 0.8859 exposes the 50% expansion at 0.8829.
Risk/reward considerations argue against entering long with prices sitting squarely at relevant resistance. On the other hand, taking up the short side looks premature without a defined bearish reversal signal. We will remain flat for now, waiting for an actionable opportunity to emerge.
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.