USD/CHF Technical Analysis: Downturn Hinted Below 0.96
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- USD/CHF Technical Strategy: Flat
- Support:0.9388, 0.9293, 0.9139
- Resistance: 0.9599, 0.9723, 0.9877
The US Dollar may be readying to turn lower against the Swiss Franc following the appearance of a bearish Evening Star candlestick pattern. A daily close below the 14.6% Fibonacci expansion at 0.9388 exposes the 23.6% level at 0.9293. Alternatively, a rebound above the 0.9537-99 area (trend line, 50% Fib expansion) clears the way for a test of the 61.8% threshold at 0.9723.
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