USD/CHF Technical Analysis: Longest Win Streak in 11 Years

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Talking Points:

• USD/CHF Technical Strategy: Flat
• Support:0.9841, 0.9660, 0.9549
• Resistance: 0.9987, 1.0132, 1.0313

The US Dollar looks poised to challenge the parity figure against the Swiss Franc after prices completed an eighth consecutive daily advance. Near-term resistance is at 0.9987, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 1.0132. Alternatively, a turn below the 38.2% Fib at 0.9841 clears the way for a challenge of the 23.6% expansion at 0.9660.

While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside. Prices are on their longest winning streak since November 2003, warning positioning may be becoming stretched. With that in mind, chasing the pair higher here doesn’t appear compelling.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com