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Talking Points:
- USD/CHF Technical Strategy: Flat
- Support:0.9139, 0.9015, 0.8890
- Resistance: 0.9288, 0.9357, 0.9468
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 0.9288 clears the way for a test of a downward-sloping barrier capping gains since mid-March, now at 0.9357.
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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
