USD/CHF Technical Analysis: Quiet Consolidation Continues
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- USD/CHF Technical Strategy: Flat
- Support: 0.9040, 0.8836, 0.8581
- Resistance: 0.9269, 0.9498, 0.9781
The US Dollar continues to stall below the 0.93 figure against the Swiss Franc having erased half of drop triggered by the SNB’s decision to abandon its EURCHF floor. A daily close above the 50% Fibonacci retracement at 0.9269 exposes the 61.8% level at 0.9498. Alternatively, a turn below the 38.2% Fib at 0.9040 opens the door for a test of resistance-turned-support at 0.8836, the January 20 high.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish 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