USD/CHF Technical Analysis – Sideways Trade Continues
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- USD/CHF Technical Strategy: Flat
- Support:0.8968 (trend line), 0.8902-34
- Resistance: 0.9001 (38.2% Fib exp.), 0.9036-44 (Jun 5 high, 50% Fib exp.)
The US Dollar remains locked in a narrow range against the Swiss Franc after taking out a falling trend line established from November 2013. The first layer of resistance is at 0.9012, the 38.2% Fibonacci expansion. A daily close above this barrier exposes the 0.9036-44 area marked by the 50% level and the June 5 high. The trend line – now at 0.8968 – has been recast as near-term. A move back below that clears the way for another challenge of the 0.8902-34 zone.
Risk/reward considerations argue against entering short with prices sitting just above support. On the other hand, taking up the long side is premature absent a defined bullish reversal signal. We will 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.