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Talking Points:
- USD/CHF Technical Strategy: Pending Long
- Support:0.8862-9, 0.8830, 0.8781
- Resistance: 0.8908, 0.8957, 0.9000
The US Dollar is attempting to launch a recovery against the Swiss Franc after retesting trend line resistance-turned-support set from November 2013. Near-term resistance is at 0.8908, the 38.2% Fibonacci retracement, with a daily close above that exposing the 23.6% level at 0.8957. Alternatively, a break below the 0.8862-9 area – marked by the trend lien and the 50% Fib – clears the way for a test of the 61.8% retracement at 0.8830.
While we have waited for the pullback from June’s swing high to yield a buying opportunity on a retest of the trend line, doing so here seems premature. A confirmed bullish reversal signal remains absent and heavy-duty event risk by way of the US Employment report looms ahead, threatening to upset positioning. On balance, we will remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
