USD/CHF Technical Analysis: Franc Weakens as Expected
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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9017, 0.8957, 0.8908
- Resistance: 0.9054, 0.9110, 0.9189
The US Dollar pushed higher against the Swiss Franc as expected after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.9114, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 0.9175. Alternatively, reversal below support in the 0.9017-22 area marked by the 23.6% Fib retracement and a rising trend line set from early May clears the way for a challenge of the 38.2% barrier at 0.8957.
We entered long USDCHF at 0.9068, initially targeting 0.9114. A stop-loss is set to trigger on a daily close below 0.9017. We will take profit on half of the trade and move to stop-loss to the breakeven level once the first objective is reached.
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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.