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USD/CHF Technical Analysis: Candle Setup Warns of Downturn

USD/CHF Technical Analysis: Candle Setup Warns of Downturn

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Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support:0.9343, 0.9076, 0.8793
  • Resistance: 0.9498, 0.9781, 1.0239

The US Dollar may be preparing to turn lower against the Swiss Franc after producing a Bearish Engulfing candlestick pattern. A daily close below resistance-turned-support at 0.9343, February 2 low, exposes the 23.6% Fibonacci expansion at 0.9076. Alternatively, a turn above the 61.8% Fib retracement at 0.9498 opens the door for a test of the 76.4% threshold at 0.9781.

Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish 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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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.

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