USD/CHF Technical Analysis: First Parity Breach in 5 Years
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- USD/CHF Technical Strategy: Flat
- Support: 0.9902, 0.9835, 0.9781
- Resistance:1.0010, 1.0118, 1.0185
The US Dollar continues to press higher against the Swiss Franc after breaching parity for the first time in five years. A daily close above the 100% Fibonacci expansion at 1.0010 exposes the 123.6% level at 1.0118. Alternatively, a turn below the 76.4% Fib at 0.9902 clears the way for a challenge of the 61.8% expansion at 0.9835.
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