USD/CHF Technical Analysis: Passing on Long Trade Setup
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- USD/CHF Technical Strategy: Flat
- Support:0.9746, 0.9428, 0.9213
- Resistance: 0.9910, 1.0177, 1.0393
The US Dollar looks poised to continue higher after clearing range resistance below the 0.98 figure against the Swiss Franc. A daily close above the 23.6% Fibonacci expansion at 0.9910 exposes the 1.0126-77 area (March 12 high, 38.2% level). Alternatively, a turn back below the 14.6% expansion at 0.9746opens the door for a test of the 0.9428-79 zone (38.2% Fib retracement, April 3 low).
Entering long is tempting from a purely technical perspective. However, we will opt to pass on the setup. The SNB’s erratic approach to monetary policy of late warns of outsized underlying volatility risk in holding CHF exposure. With that in mind, we will stand aside and look for opportunities elsewhere.
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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.