USD/CHF Technical Analysis: Trend Line Capping Gains
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- USD/CHF Technical Strategy: Flat
- Support:0.8908, 0.8861-69, 0.8830
- Resistance: 0.8927, 0.8957, 0.9000
The US Dollar turned lower against the Swiss Franc as expected after showing back-to-back Shooting Star candlesticks below chart resistance. Sellers are testing support at 0.8908, the 38.2% Fibonacci retracement. A daily close below this barrier targets the 0.8861-69 area marked by the 50% level and the April 22 high. Alternatively, a turn above falling trend line resistance at 0.8927 opens the door for a test of the 23.6% Fibat 0.8957.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, looking for a more actionable opportunity to present itself.
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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.