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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9139, 0.9015, 0.8890
- Resistance: 0.9293, 0.9397, 0.9539
The US Dollar is renewing its expected push lower against the Swiss Franc after a brief period of consolidation. Near-term support is at 0.9139, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.9015. Alternatively, a move above the 23.6% Fib at 0.9293 opens the door for a challenge of the 0.9388-97 area (14.6% expansion, horizontal pivot).
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
