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Talking Points:
- USD/CHF Technical Strategy: Longat 0.9452
- Support: 0.9663, 0.9530, 0.9441
- Resistance:0.9794, 0.9926, 1.0049
The US Dollar may be on the verge of a turn lower against Swiss Franc telegraphed by the formation of a bearish Rising Wedge chart pattern. The appearance of negative RSI divergence reinforces the probability of a turn lower. Near-term support is at 0.9663, the wedge floor, with a break below that on a daily closing basis exposing the November 19 low at 0.9530. Alternatively, a reversal above the 0.9775-94 area marked by the wedge top and the 23.6% Fib expansion opens the door for a challenge of the 38.2% level at 0.9926.
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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
