USD/CHF Technical Analysis: Broken Wedge Floor Retested
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- USD/CHF Technical Strategy: Flat
- Support: 0.9660, 0.9619, 0.9552
- Resistance:0.9727, 0.9781, 0.9835
The US Dollar mounted a swift recovery against the Swiss Franc after falling as expected, with prices threatening to overturn the downward reversal. A daily close above the intersection of Wedge floor support-turned-resistance and the 38.2% Fibonacci expansion at 0.9727 exposes the 50% level at 0.9781. Alternatively, a decline below the 23.6% Fib at 0.9660 clears the way for a test of the 14.6% level at 0.9619.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.