USD/CHF Technical Analysis: Franc Gains May Be Ahead
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- USD/CHF Technical Strategy: Longat 0.9452
- Support: 0.9651, 0.9595, 0.9550
- Resistance:0.9685, 0.9745, 0.9784
The US Dollar may be forming a top against the Swiss Franc after prices put in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracementat 0.9651 exposes the 38.2% level at 0.9595. Alternatively, a reversal above the 14.6% retracement at 0.9685 clears the way for a test of the 50% Fib expansion at 0.9745.
We entered long USDCHF at 0.9452 and subsequently booked profit on half of the position. The remainder of the trade is open to capture any further upside momentum with a stop-loss trailed 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