USD/CHF Technical Analysis: Stalling Below 0.93 Figure
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- USD/CHF Technical Strategy: Flat
- Support: 0.9040, 0.8836, 0.8582
- Resistance: 0.9269, 0.9498, 0.9781
The US Dollar paused to consolidate below the 0.93 figure after erasing half of its post-SNB announcement drop against the Swiss Franc. Near-term resistance is at 0.9269, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 0.9498. Alternatively, a push below the 38.2% Fib at 0.9040 clears the way for a challenge of resistance-turned-support at 0.8836, the January 20 high.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat 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.