News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USD/CHF Technical Analysis – Resistance Now Above 0.90

USD/CHF Technical Analysis – Resistance Now Above 0.90

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support:0.8952-56 (Apr 4 high, 100% Fib exp.), 0.8896 (76.4% Fib exp.)
  • Resistance: 0.9016 (123.6% Fib exp.), 0.9053 (138.2% Fib exp.)

The US Dollar moved higher as expected against the Swiss Franc after prices produced a bullish Piercing Line candlestick pattern. A break above resistance in the 0.8952-56 area – the 100% Fibonacci expansion and the April 4 high – has cleared the way for a challenge of the 123.6% level at 0.9016. A daily close above that exposes the 138.2% Fib at 0.9053. A reversal back below 0.8952 aims for the 76.4% Fibat 0.8896.

While a long a position seems workable from a risk/reward perspective, we will tactically opt not to pursue it. The inverse correlation between USDCHF and EURUSD is now 0.92 on 20-day percent change studies, and we already have a short EURUSD position. Adding a long USDCHF trade here would in effect double our existing exposure, so we will continue to stand aside.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

USD/CHF Technical Analysis – Resistance Now Above 0.90

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.

DISCLOSURES