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Talking Points:
- USD/CHF Technical Strategy: Longat 0.9452
- Support: 0.9595, 0.9550, 0.9505
- Resistance:0.9651, 0.9685, 0.9745
The US Dollar began to edge downward against the Swiss Franc as expected after producing a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 0.9595, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the intersection of a rising trend line and the 50% level at 0.9550. Alternatively, a turn above the 23.6% retracement at 0.9651 clears the way for a test of the 14.6% threshold at 0.9685.
We bought USDCHF at 0.9452 and subsequently booked profit on half of the position. The rest of the trade remains open to capture any further upside momentum with a stop-loss at breakeven (0.9452).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
