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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 1.0119, 1.0059, 0.9962
- Resistance: 1.0185, 1.0239, 1.0293
The US Dollar may be carving out a top against the Swiss Franc following the appearance of a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci retracementat 1.0119 exposes the 23.6% level at 1.0059. Alternatively, a turn above the 138.2% Fib at 1.0185 opens the door for a test of the 150% expansion at 1.0239.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
