USD/CHF Technical Analysis: Long Position Triggered
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- USD/CHF Technical Strategy: 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 after completion of a Flag chart pattern last week appeared to mark longer-term uptrend resumption. 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 0.9380 clears the way for a test of the 38.2% Fib retracement at 0.9312.
Our entry order to buy USDCHF at 0.9452 has been triggered. We are initially targeting 0.9592, with a stop-loss to be activated on a daily close below 0.9312.We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com