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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9213, 0.8997, 0.8730
- Resistance: 0.9490, 0.9718, 0.9862
The US Dollar is digesting losses against the Swiss Franc after sinking to the lowest level in nearly three months. Near-term support is at 0.9213, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 0.8997. Alternatively, a reversal above the 0.9428-90 area (38.2% Fib, March 26 low) clears the way for a test of the April 23 high at 0.9718.
While entering short is tempting from a purely technical perspective, we will tactically opt to stand aside. Erratic SNB policy moves since the beginning of the year imply a worrisome degree of outsized volatility risk in having exposure to anything CHF-related. As such, we prefer to stand aside.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
