USD/CHF Technical Analysis – Critical Trend Line Retested
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Pending Long
- Support:0.8869, 0.8830, 0.8781
- Resistance: 0.8908, 0.8957, 0.9000
The US Dollar continued to move lower against the Swiss Franc as expected, sinking to the lowest level in six weeks. Sellers are testing support at 0.8869, the 50% Fibonacci retracement. A daily close below this barrier initially targets the 61.8% level at 0.8830. Alternatively, a reversal above near-term resistance at 0.8908, the 38.2% Fib, aims for the 23.6% retracement at 0.8957.
The latest down move, launched in early June, appears corrective in the context of the earlier break above trend line resistance set from November 2013. As such, we will opt to wait for the pullback to offer a buying opportunity instead of taking up the short side.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.