USD/CHF Technical Analysis – Franc Back on the Defensive
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- USD/CHF Technical Strategy: Flat
- Support:0.8908 (38.2% Fib ret.), 0.8869 (50% Fib ret.)
- Resistance: 0.8977-90 (trend line, 23.6% Fib exp.), 0.9039 (38.2% Fib exp.)
The US Dollar bounced swiftly higher having found support above the 0.89 figure against the Swiss Franc. Prices are testing resistance at a falling trend line set from November 2013, a barrier reinforced by the 23.6% Fibonacci expansion at 0.8990. A daily close above the latter barrier exposes the 38.2% level at 0.9039. Near-term support is at 0.8908, the 38.2% Fib retracement, with a reversal beneath that clearing the way for a test of the 50% threshold at 0.8869.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.