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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9203, 0.9108, 0.8954
- Resistance: 0.9357, 0.9474, 0.9599
The US Dollar may be preparing to move higher against the Swiss Franc after prices put in a bullish Three Inside Up candlestick pattern. A daily close above the May 12 high at 0.9357 exposes the 38.2% Fibonacci retracementat 0.9474. Alternatively, a reversal below the 14.6% Fib expansion at 0.9203 clears the way for a test of the 23.6% level at 0.9108.
A long position seems compelling from a strictly technical point of view, but we will tactically pass for now. 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.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
