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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9695, 0.9428, 0.9213
- Resistance: 1.0051, 1.0126, 1.0249
The US Dollar lost its footing above parity threshold against the Swiss Franc overturning its two-month uptrend. A daily close below the 23.6% Fibonacci retracement at 0.9695 exposes the 38.2% level at 0.9428. Alternatively, a move back above trend line support-turned-resistance at 1.0051 opens the door for at test of the March 12 high at 1.0126.
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
