USD/CHF Technical Analysis: Franc Bounce May Be Ahead
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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9530, 0.9432, 0.9353
- Resistance: 0.9689, 0.9737, 0.9805
The US Dollar may correct lower against the Swiss Franc after prices completed a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 0.9530, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 0.9432. Alternatively, a reversal above the October 6 high at 0.9689 opens the door for a challenge of the 38.2% Fib expansion at 0.9737.
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.