USD/CHF Technical Analysis – Support Now Below 0.89
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- USD/CHF Technical Strategy: Pending Long
- Support:0.8869, 0.8830, 0.8781
- Resistance: 0.8908, 0.8957, 0.9000
The US Dollar looks vulnerable to deeper losses against the Swiss Franc after prices broke through range support to set a new monthly low. All eyes are now on 0.8869, a support level marked by the 50% Fibonacci retracement and reinforced by a formerly broken falling trend line set from November 2013. A daily close below that exposes the 61.8% level at 0.8830. Alternatively, a turn back above the 38.2% Fib at 0.8908 targets the 23.6% retracement at 0.8957.
Losses since the beginning of June have looked corrective in the context of the break above trend line resistance. With that in mind, we will opt to wait for the current pullback to yield a buying opportunity rather than take up a short position.
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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.