USD/CHF Technical Analysis: Waiting for Cues Below 0.91
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- USD/CHF Technical Strategy: Flat
- Support:0.9047, 0.9010, 0.8951
- Resistance: 0.9110, 0.9189, 0.9268
The US Dollar is in consolidation mode below the 0.91 figure against the Swiss Franc after rising to the highest level in six months last week. A daily close below support at 0.99067, the 14.6% Fibonacci retracement, exposes the 23.6% level at 0.0.9010. Alternatively, a move above the 76.4% Fib expansion at 0.9110 opens the door for a test of the 100% barrier at 0.9189.
Positioning is inconclusive at this point. On one hand, the latest leg of the uptrend launched from mid-July appears to have been overturned, warning losses may ahead, but prices are too close to support to justify a short on a risk/reward basis. On the other, the longer-term trend favors the bulls but a defined near-term bullish signal is absent. We will stand aside for now.
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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.