USD/CHF Technical Analysis: Bearish Reversal Cues Remain
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- USD/CHF Technical Strategy: Longat 0.9452
- Support: 0.9595, 0.9550, 0.9505
- Resistance:0.9706, 0.9761, 0.9807
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 0.9595-0.9616 area marked by the 38.2% Fibonacci retracementand the November 10 low exposes the 0.9550-59 zone (rising trend line, 38.2% level). Alternatively, a reversal above the 23.6% Fib expansion at 0.9706 clears the way for a test of the 0.9741-61 region (38.2% expansion, November 7 high).
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.