USD/CHF Technical Analysis: Key Support Just Below 0.93
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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9294, 0.9207, 0.9130
- Resistance: 0.9369, 0.9429, 0.9489
The US Dollar may be setting up for a pullback against the Swiss Franc after rallying as expected as prices complete a bearish Evening Star candle pattern. Negative RSI divergence bolsters the case for a downside scenario. A daily close below the intersection of rising trend line support and the 14.6% Fibonacci retracementat 0.9294 exposes the 0.9207-32 area marked by the October 2013 top and the 23.6% level. Alternatively, a turn above the 38.2% Fib expansion at 0.9369 opens the door for a test of the50% threshold at 0.9429.
We bought USDCHF at 0.9068 and have since taken profit on half of our exposure. The remainder of the trade is open to capture any further upside momentum. The stop-loss is now at 0.9114, our initial objective.
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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.