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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9388, 0.9293, 0.9139
- Resistance: 0.9599, 0.9723, 0.9877
The US Dollar may be preparing to renew its down trend against the Swiss Franc after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.9388, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.9293. Alternatively, a move above the 0.9535-99 area (trend line, 50% Fib expansion) opens the door for a challenge of the 61.8% threshold at 0.9723.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
