USD/CHF Technical Analysis: Six-Week Floor Pressured
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- USD/CHF Technical Strategy: Flat
- Support:0.9139, 0.9015, 0.8890
- Resistance: 0.9280, 0.9364, 0.9544
The US Dollar moved lower against the Swiss Franc as expected after putting in a bearish Evening Star candlestick pattern. 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 turn above trend line support-turned-resistance at 0.9280 opens the door for a challenge of a downward-sloping barrier capping gains since mid-March, now at 0.9364.
A short positionseems attractive from a purely technical perspective but we will tactically opt to pass on the position. Erratic SNB policy since the beginning of the year hints at elevated outsized volatility risk in holding any CHF-based exposure. With that in mind, we will remain on the sidelines.
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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.