USD/CHF Technical Analysis: Downswing Warning Emerges
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9089-0.9114, 0.9043, 0.8994
- Resistance: 0.9175, 0.9223, 0.9272
The US Dollar is vulnerable to a pullback against the Swiss Franc after prices put in a Bearish Engulfing candlestick pattern at resistance below the 0.92 figure. Near-term support is at 0.9114, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 0.9070. Alternatively, a reversal above the 38.2% Fib expansion at 0.9175 opens the door for a test of the 50% threshold at 0.9223.
We entered long USDCHF at 0.9068and have since taken profit on half of our exposure. The stop-loss on the remainder of the trade will now be adjusted to 0.9114 – our initial objective – as a precaution in the event that a larger downswing materializes.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.