USD/CHF Technical Analysis: Franc Drops to 5-Month Low
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- USD/CHF Technical Strategy: Flat
- Support:0.9770, 0.9712, 0.9641
- Resistance: 0.9829, 0.9900, 1.0016
The US Dollar is attempting to continue building higher against the Swiss Franc, hitting the highest level in close to five months. Near-term resistance is at 0.9829, the 61.8% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 0.9900. Alternatively, a turn back below the 50% Fib at 0.9770 opens the door for a challenge of the 38.2% expansion at 0.9712.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.