USD/CHF Technical Analysis: Wedge Setup Warns of Turn
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- USD/CHF Technical Strategy: Longat 0.9452
- Support: 0.9651, 0.9537, 0.9377
- Resistance:0.9792, 0.9926, 1.0049
The US Dollar may be preparing for a pullback against the Swiss Franc as prices trace out a bearish Rising Wedge chart formation. Negative RSI divergence bolsters the case for a downside scenario. A daily close below the wedge floor at 0.9655 exposes the November 19 low at 0.9530. Alternatively, a turn above the 0.9775-92 area marked by the wedge top and the 23.6% Fib expansion clears the way for a test of the 38.2% level at 0.9926.
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
--- 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.