USD/CHF Technical Analysis: Waiting for Long Entry Signal
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- USD/CHF Technical Strategy: Flat
- Support: 0.9312, 0.9196, 0.9079
- Resistance:0.9456, 0.0.9508, 0.9545
The US Dollar fell as expected against the Swiss Franc after putting in a bearish Dark Cloud Cover candlestick pattern. A daily close below the intersection of a falling channel floor and the 38.2% Fibonacci retracement at 0.9312 exposes the 0.9196-0.9211 area marked by a rising trend line set from early May and the 50% level. Alternatively, a reversal above the 23.6% Fib at 0.9456 opens the door for a challenge of channel top resistance at 0.9508
On balance, the dominant trend has favored the upside for over five months. With that mind, we will look to the current pullback as corrective and position to enter long once selling pressure ebbs rather than aim to take on short exposure.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com