USD/CHF Technical Analysis: Deeper Pullback Sought to Buy
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- USD/CHF Technical Strategy: Pending Long at 0.9452
- Support: 0.9400, 0.9312, 0.9196
- Resistance:0.9592, 0.9736, 0.9852
The US Dollar corrected lower against the Swiss Franc having seemingly resumed its longer-term uptrend with the completion of a Flag pattern last week. A daily close above the 23.6% Fibonacci expansionat 0.9592 exposes the 0.9689-0.9736 area marked by the October 6 high and the 38.2% level. Alternatively, a reversal back below Flag top resistance-turned-support at 0.9400 opens the door for a challenge of the 0.9312-59 zone (October 15 low, 38.2% Fib retracement).
Risk/reward conditions are skewed against entering long at present and we will set a pending order to buy the pair at 0.9452. If triggered, the position 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.