USD/CHF Technical Analysis: Passing on Short Trade Setup
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- USD/CHF Technical Strategy: Flat
- Support: 0.9554, 0.9391, 0.9259
- Resistance:0.9654, 0.9707, 0.9817
The US Dollar turned lower against the Swiss Franc as expected having found resistance near the 0.9800 figure. Near-term support is at 0.9554, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 0.9391. Alternatively, a turn above the 14.6% Fib at 0.9654 opens the door for a challenge of wedge floor support-turned-resistance at 0.9707.
While entering short is compelling from a purely technical perspective, we will tactically opt to stand aside. Our long-term outlook calls for a broadly stronger US Dollar against its key counterparts, painting the current decline as a corrective pullback. With that in mind, we will look to on-coming weakness as an chance to get long at more attractive levels rather than a selling opportunity.
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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.