USD/CHF Technical Analysis: Testing Support Above 0.89
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- USD/CHF Technical Strategy: Flat
- Support:0.8908, 0.8861-69, 0.8830
- Resistance: 0.8929, 0.8957, 0.9000
The US Dollar pulled back against the Swiss Franc as expected after showing back-to-back Shooting Star candlesticks below chart resistance. Near-term support is at 0.8908, the 38.2% Fibonacci retracement, with a daily close below that exposing the 0.8861-69 area marked by the 50% level and the April 22 high. Alternatively, a reversal above falling trend line resistance at 0.8929 opens the door for a test of the 23.6% Fibat 0.8957.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more attractive opportunity to emerge.
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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.