USD/CHF Technical Analysis: Franc Drops Most in 3 Months
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- 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.
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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.