USD/CHF Technical Analysis: Trend Line Caps Rebound
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- USD/CHF Technical Strategy: Flat
- Support:0.9235, 0.9139, 0.9015
- Resistance: 0.9324, 0.9550, 0.9660
The US Dollar stalled at trend line resistance capping gains since mid-March after finding support below the 0.92 figure. Near-term falling trend line resistance is at 0.9324, with a break above that on a daily closing basis exposing support-turned-resistance at 0.9550. Alternatively, a turn below a recently broken channel top at 0.9235 clears the way for a test of the 38.2% Fibonacci expansion at 0.9139.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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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.