USD/CHF Technical Analysis: Sellers Aim Below 0.95 Figure

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Talking Points:

• USD/CHF Technical Strategy: Flat
• Support:0.9428, 0.9213, 0.8997
• Resistance: 0.9695, 1.0126, 1.0253

The US Dollar looks vulnerable to deeper losses against the Swiss Franc after prices lost their grip on the 0.97 figure. Near-term support is at 0.9428, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 0.9213. Alternatively, a reversal above the 23.6% Fib at 0.9695 clears the way for a challenge of the 1.0086-126 area (trend line support-turned-resistance, March 12 high).

While entering short is tempting from a purely technical perspective, we will opt to stand side. The longer-term USDCHF trend looks decidedly bullish, supported by a favorable Fed vs. SNB policy outlook. With that in mind, we will treat oncoming weakness as a chance to enter long at a more favorable rate rather than a selling opportunity.

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Daily Chart - Created Using FXCM Marketscope

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