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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8896 (76.4% Fib exp.), 0.8859 (61.8% Fib exp.)
- Resistance: 0.8952-56 (Apr 4 high, 100% Fib exp.), 0.9016 (123.6% Fib exp.)
The US Dollar advanced as expected against the Swiss Franc after prices put in a bullish Piercing Line candlestick pattern. The spotlight is now on resistance in the 0.8952-56 area, marked by the 100% Fibonacci expansion and the April 4 high. A daily close above this barrier initially exposes the 123.6% level at 0.9016. The first layer of support is at 0.8896, the 76.4% Fib, with a reversal below that aiming for the 61.8% expansion at 0.8859.
A long position at present looks premature from a tactical and a risk/respective perspective without confirmation on a defined break above the April top. We will remain flat for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
