USD/CHF Technical Analysis: Topping Cues Emerge Again
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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9299, 0.9207, 0.9117
- Resistance: 0.9401, 0.9463, 0.9564
The US Dollar may be setting up for a pullback against the Swiss Franc after rallying as expected as prices complete a bearish Dark Cloud Cover candle pattern. Negative RSI divergence bolsters the case for a downside scenario. A daily close below the September 16 low at 0.9299 exposes the October 2013 top at 0.9207. Alternatively, a turn above the 14.6% Fibonacci expansion at 0.9401 opens the door for a test of the23.6% level at 0.9463.
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.