USD/CHF Technical Analysis: Sellers Trying to Turn Uptrend
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- USD/CHF Technical Strategy: Long at 0.9068
- Support:0.9518, 0.9432, 0.9353
- Resistance: 0.9591, 0.9689, 0.9766
The US Dollar turned lower against the Swiss Franc as expected after producing a bearish Dark Cloud Cover candlestick pattern. Near-term support is in the 0.9518-30 area, marked by a rising trend line and 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 turn above the 14.6% Fib at 0.9591 opens the door for a challenge of the 0.9677-89 zone bracketed by the 100% Fib expansion and the October 6 high.
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