USD/CHF Technical Analysis: Standing Aside on SNB Shocker
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- USD/CHF Technical Strategy: Flat
- Support: 0.8240, 0.7989, 0.7710
- Resistance: 0.8566, 0.8702, 0.9017
The Swiss Franc soared against the US Dollar after the SNB unexpectedly scrapped its EURCHF floor, putting prices at levels unseen since 2011. 24-hour realized volatility jumped to the highest level since at least 1971, swelling to nearly five times its previous peak (recorded in March 1995). Attempting to establish clear-cut technical barriers and subsequently expecting price action to adhere to them is more than a little foolhardy (to say the least) in the current environment.
With that in mind, we’ve sketched out broad-based inflection points that have proven noteworthy in the past several years, but have no intention of establishing any near-term Swiss Franc exposure. Rather, we will remain on the sidelines until the dust settles and a compelling opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com