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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9054, 0.9017, 0.8957
- Resistance: 0.9110, 0.9189, 0.9268
The US Dollar is digesting recent gains below the 0.91 figure against the Swiss Franc, with negative RSI divergence warning a corrective pullback may be ahead. Near-term support is at 0.9054, the 14.6% Fibonacci retracement. A break below that on a daily closing basis exposes the 23.6% level at 0.9017. Alternatively, a reversal above the 76.4% Fib expansion at 0.9110 clears the way for a challenge of the 100% threshold at 0.9189.
We are tactically opting to stand aside for now. On one hand, the rally from mid-July appears to have been overturned and RSI hints bullish momentum is fading. On the other, the longer-term trend continues to favor gains. On balance, we will remain flat and treat 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
