USD/CHF Technical Analysis: Waiting for Long Trade Trigger
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- USD/CHF Technical Strategy: Pending Long at 0.9452
- Support: 0.9415, 0.9312, 0.9196
- Resistance:0.9592, 0.9736, 0.9852
The US Dollar may have resumed its advance against the Swiss Franc after an expected downswing following the appearance of a Dark Cloud Cover candle pattern. Near-term resistance is at 0.9592, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 0.9689-0.9734 area marked by the October 6 high and the 38.2% level. Alternatively, a turn below channel top resistance-turned-support at 0.9415 clears the way for a test of the 0.9312-59 zone (October 15 low, 38.2% Fib retracement).
Risk/reward considerations do not allow for a long trade at current market levels and we will set up a pending order to buy the pair at 0.9452. If triggered, the trade will initially target 0.9592 with a stop-loss activated on a daily close below 0.9312.
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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.