USD/CHF Technical Analysis: Support Above 0.94 Holding
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- USD/CHF Technical Strategy: Flat
- Support: 0.9432, 0.9353, 0.9274
- Resistance:0.9566, 0.9626, 0.9724
The US Dollar moved lower as expected against the Swiss Franc after prices produced a bearish Dark Cloud Cover candlestick pattern. Near-term support is in the 0.9432-68, marked by the 38.2% Fibonacci retracement and the October 14 low, with a break below that on a daily closing basis exposing the 50% level at 0.9353. Alternatively, a reversal above the 14.6% Fib expansion at 0.9566 opens the door for a challenge of the 23.6% threshold at 0.9626.
The dominant trend has favored the upside since early May, suggesting recent weakness is corrective. With that in mind, we will opt against taking up the short side and wait for a buying opportunity following confirmation that the pullback has been exhausted.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com