USD/CHF Technical Analysis: Flat-Lining at May Top
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- USD/CHF Technical Strategy: Flat
- Support:0.9258, 0.9186, 0.9113
- Resistance: 0.9373, 0.9490, 0.9560
The US Dollar continues to tread water after failing to push above the May high above the 0.94 figure against the Swiss Franc. Near-term resistance is at 0.9373, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.9466-90 (50% level, channel support-turned-resistance). Alternatively, a turn below the 23.6% Fib at 0.9258 clears the way for a test of the 14.6% retracement at 0.9186.
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