USD/CHF Technical Analysis: Franc Back on the Defensive
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- USD/CHF Technical Strategy: Long at 0.9452
- Support: 0.9456, 0.9312, 0.9196
- Resistance:0.9592, 0.9736, 0.9852
The US Dollar looks to be resuming its uptrend against the Swiss Franc after completing a Flat chart formation 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 below the 0.9456-66 area (trend line, 23.6% Fib retracement) opens the door for a challenge of the 0.9312-59 zone (October 15 low, 38.2% Fib retracement).
We entered long USDCHF at 0.9452, initially targeting 0.9592. A stop-loss will 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