USD/CHF Technical Analysis: Resistance Now Above 0.99
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support:0.9746, 0.9428, 0.9213
- Resistance: 0.9910, 1.0177, 1.0393
The US Dollar is aiming higher against the Swiss Franc, with buyers setting their sights above the 0.99 figure. Near-term resistance is at 0.9910, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 1.0126-77 area (March 12 high, 38.2% level). Alternatively, a reversal below the 14.6% expansion at 0.9746clears the way for a challenge of the 0.9428-79 zone (38.2% Fib retracement, April 3 low).
A long position seems compelling from a strictly technical point of view, but we will tactically pass on the opportunity. Erratic SNB monetary policy since the beginning of the year warns of significant underlying outsized volatility risk inherent to any CHF-linked exposure. As such, we will look for setups elsewhere.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.