USD/CHF Technical Analysis: Franc in Consolidation Mode
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- USD/CHF Technical Strategy: Flat
- Support: 0.8552, 0.8378, 0.8094
- Resistance: 0.8836, 0.9040, 0.9269
The US Dollar continues to consolidate against the Swiss Franc having plunged following last week’s surprise SNB decision to abandon the EURCHF floor. Near-term resistance is at 0.8836, the January 20 high, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 0.9040. Alternatively, a turn below the 14.6% Fib expansion at 0.8552 clears the way for a challenge of the 23.6% threshold at 0.8378.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.