USD/CHF Technical Analysis: Passing on Long Trade Setup
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- USD/CHF Technical Strategy: Flat
- Support: 1.0010, 0.9902, 0.9835
- Resistance: 1.0118, 1.0185, 1.0239
The US Dollar continues to press higher against the Swiss Franc after breaching parity for the first time in five years. Near-term resistance is at 1.0118, the 123.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 138.2% level at 1.0185. Alternatively, a reversal below the 100% Fib at 1.0010 clears the way for a challenge of the 76.4% expansion at 0.9902.
While entering long is a tempting proposition from a purely technical perspective, we are leery of chasing the greenback higher here. Minutes from December’s pivotal FOMC meeting may encourage markets to rethink of the rate hike timeline, a dynamic amplified by a softer Employment report. With that in mind, we will stand aside 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.