USD/CHF Technical Analysis – Treading Water Below 0.90
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- USD/CHF Technical Strategy: Flat
- Support:0.8946 (23.6% Fib ret.), 0.8852 (14.6% Fib ret.)
- Resistance: 0.8978 (trend line), 0.9000, 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 0.8978), 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 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.