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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9254, 0.9139, 0.9015
- Resistance: 0.9397, 0.9541, 0.9658
The US Dollar declined against the Swiss Franc as expected after producing a bearish Evening Star candlestick pattern. A daily close below trend line support at 0.9254 exposes the 38.2% level at 0.9139. Alternatively, a reversal above support-turned-resistance at 0.9397 clears the way for a test of trend line resistance at 0.9541.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
