USD/CHF Technical Analysis: May High in the Crosshairs
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support:0.9177, 0.9071, 0.8958
- Resistance: 0.9554, 0.9769, 0.9985
The US Dollar continued to push higher against the Swiss Franc, with buyers now taking aim at late May swing highs. Near-term resistance is in the 0.9502-54 area (23.6% Fibonacci expansion, trend line), with a break below that on a daily closing basis exposing the 38.2% level at 0.9769. Alternatively, a turn below trend line support at 0.9177 clears the way for a test of the May 7 low at 0.9071.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.