USD/CHF Technical Analysis – Stalling Below 0.90 Figure
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- USD/CHF Technical Strategy: Flat
- Support:0.8946 (23.6% Fib ret.), 0.8852 (14.6% Fib ret.)
- Resistance: 0.8980 (trend line), 0.9000, 0.9100 (38.2% Fib ret.)
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 0.8980, 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, followed by the 38.2% Fibonacci retracement at 0.9100. Support is at 0.8321, the 23.6% level. A daily close below that eyes the 14.6% level at 0.8852.
Prices are wedged too closely between immediate up- and down-side barriers to justify a trade from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more actionable opportunity to present itself.
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.