USD/CHF Technical Analysis: Bottom Set Above 0.90 Level?
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- USD/CHF Technical Strategy: Flat
- Support:0.9320, 0.9225, 0.9071
- Resistance: 0.9474, 0.9599, 0.9723
The US Dollar may have formed a bottom against the Swiss Franc having produced a bullish Three Inside Up candlestick pattern. Near-term resistance is at 0.9474, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.9599. Alternatively, a turn below the 23.6% Fib at 0.9320 clears the way for a test of the 14.6% retracement at 0.9225.
While entering long 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