USD/CHF Technical Analysis: Franc Rises to Monthly High
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- USD/CHF Technical Strategy: Flat
- Support:0.9139, 0.9015, 0.8890
- Resistance: 0.9275, 0.9373, 0.9544
The US Dollar declined against the Swiss Franc as expected after producing a bearish Evening Star candlestick pattern. A daily close below the 38.2% Fibonacci expansion at 0.9139 exposes the 50% level at 0.9015. Alternatively, a push above trend line support-turned-resistance at 0.9275 clears the way for a test of a downward-sloping barrier capping gains since mid-March, now at 0.9373.
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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.