USD/CHF Technical Analysis: Looking to Get Long on Pullback
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- USD/CHF Technical Strategy: Flat
- Support:0.9051, 0.9014, 0.8954
- 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 seven months. Negative RSI divergence warns that a corrective pullback may be ahead. 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.
We are tactically opting to stand aside for now. On one hand, the up move from mid-July appears to have been overturned and RSI hints bullish momentum is fading. On the other, the overall trend favors gains. We will stand aside for now, treating any pullback from here as a potential buying opportunity.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com