USD/CHF Technical Analysis: Testing 3-Month Trend Support
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- USD/CHF Technical Strategy: Flat
- Support:0.9017, 0.8957, 0.8908
- Resistance: 0.9054, 0.9110, 0.9189
The US Dollar turned lower against the Swiss Franc as expected after finding resistance below the 0.91 figure. Near-term support is at 0.9017, the intersection of the 23.6% Fibonacci retracement and a rising trend line set from early May. A break below that on a daily closing basis exposes the 38.2% level at 0.8957. Alternatively, a reversal above the 14.6% retracement at 0.9054 clears the way for a challenge of the 76.4% Fib expansion at 0.9110.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. 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.