USD/CHF Technical Analysis: Franc Rebound May Be Ahead
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- USD/CHF Technical Strategy: Flat
- Support:0.9054, 0.9017, 0.8957
- Resistance: 0.9110, 0.9189, 0.9268
The US Dollar is in consolidation mode below the 0.91 figure against the Swiss Franc but negative RSI divergence warns a move downward may be ahead. A daily close below support at 0.9054, the 14.6% Fibonacci retracement, exposes the 23.6% level at 0.9017. 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.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests entering long is premature. With that in mind, we will remain flat 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.