USD/CHF Technical Analysis: Candle Setup Hints at Pullback
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- USD/CHF Technical Strategy: Flat
- Support:0.9987, 0.9859, 0.9695
- Resistance: 1.0132, 1.0313, 1.0604
The US Dollar may be readying to turn lower against the Swiss Franc after prices put in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 50% Fibonacci expansion at 0.9987 exposes the 14.6% Fib retracement at 0.9859. Alternatively, a push above the 61.8% expansion at 1.0132 opens the door for a test of the 76.4% threshold at 1.0313.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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.