USD/CHF Technical Analysis: Long Trade Hits First Target
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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 appears to have rekindled its uptrend against the Swiss Franc after breaking out of a Flag chart formation last week. 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. A Shooting Star candle warns of indecision and hints a near-term pullback may materialize however. A turn below the 0.9456-77 area (rising trend line, 23.6% Fib retracement) clears the way for a test of the 0.9312-59 zone (October 15 low, 38.2% Fib retracement).
We bought USDCHF at 0.9452, initially targeting 0.9592. The pair has now hit our first objective, booking profit on half of the position. The rest will remain open to capture any further upside momentum with a stop-loss adjusted to breakeven (0.9452).
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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.