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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8757, 0.8582, 0.8299
- Resistance: 0.9040, 0.9269, 0.9498
The US Dollar continued to recovery for a second consecutive day against the Swiss Franc having tumbled after the SNB’sdecision to scrap its EURCHF floor. Near-term resistance is at 0.9040, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.9269. Alternatively, a turn below the 23.6% Fib at 0.8757 clears the way for a challenge of the 14.6% retracement at 0.8582.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
