USD/CHF Technical Analysis – Bulls Rejected Below 0.90
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- USD/CHF Technical Strategy: Flat
- Support:0.8921 (23.6% Fib ret.), 0.8879 (38.2% Fib ret.)
- Resistance: 0.8983 (trend line), 0.9000
The US Dollar rose against the Swiss Franc as expected after prices put in a bullish Piercing Line candlestick pattern. Prices are testing resistance at 0.8983, marked by a trend line set from November 2013. A break above this barrier clears the way for a challenge of the 0.90 figure. Support is at 0.8321, the 23.6% Fibonacci retracement. A daily close below that eyes the 38.2% level at 0.8879.
Positioning is inconclusive for the time being. Furthermore, an inverse correlation of -0.94 between USDCHF and EURUSD (20-day percent change studies) argues against taking a trade considering we already have exposure in the latter pair. We will remain flat.
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.