USD/CHF Technical Analysis: Probing Above 0.98 Figure
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- USD/CHF Technical Strategy: Flat
- Support: 0.9715, 0.9552, 0.9469
- Resistance:0.9815, 0.9978, 1.0109
The US Dollar surged to probe above the 0.98 figure against the Swiss Franc after the SNB unexpectedly dropped interest rates into negative territory. Near-term resistance is at 0.9815, the intersection of a rising trend line and the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 0.9978. Alternatively, a reversal below the 14.6% Fib at 0.9715 opens the door for a challenge of the December 16 low at 0.9552.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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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.