USD/CHF Technical Analysis: Selloff Pauses Below 0.95
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- USD/CHF Technical Strategy: Flat
- Support:0.9428, 0.9213, 0.8997
- Resistance: 0.9756, 0.9921, 1.0188
The US Dollar has found interim support below the 0.95 against the Swiss Franc after losing momentum above the parity threshold. 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 14.6% Fib expansion at 0.9756 clears the way for a challenge of the 23.6% barrier at 0.9921.
Entering short seems compelling from a purely technical perspective but the longer-term USDCHF trend continues to look bullish, bolstered by a supportive Fed vs. SNB policy outlook. As such, we will stand aside for now and treat near-term losses as an opportunity to enter long once the pullback is exhausted.
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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.