USD/CHF Technical Analysis: Franc Drops Most in 3 Months
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support:0.9632, 0.9574, 0.9462
- Resistance: 0.9726, 0.9803, 0.9879
The US Dollar moved sharply higher against the Swiss Franc as expected following the appearance of a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.9726, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.9803. Alternatively a move below the 23.6% Fib at 0.9632 clears the way for a test of the 14.6% retracement at 0.9574.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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