USD/CHF Technical Analysis – Testing 7-Month Resistance Line
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- USD/CHF Technical Strategy: Flat
- Support:0.8946 (23.6% Fib ret.), 0.8852 (14.6% Fib ret.)
- Resistance: 0.8981 (trend line), 0.9100 (38.2% Fib ret.)
The US Dollar advanced against the Swiss Franc as expected after forming a bullish Piercing Line candlestick pattern. The pair continues to test resistance at a falling trend line set from November 2013 (now at 0.8981), with a break higher exposing the 38.2% Fibonacci retracement at 0.9100. Support is at 0.8946, the 23.6% level. A turn below that on a daily closing basis opens the door for a test of the 14.6% Fib at 0.8852.
Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a confirmed bearish reversal signal warns against taking up the short side. Wewill remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com