USD/CHF Technical Analysis: Channel Resistance Under Fire
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- USD/CHF Technical Strategy: Flat
- Support:0.9829, 0.9762, 0.9680
- Resistance: 0.9895, 0.9977, 1.0110
The US Dollar continues to grind upward against the Swiss Franc, with prices now testing the upper bound of the pair’s two-month uptrend. A daily close above the 0.9868-95 area (61.8% Fibonacci expansion, channel top) exposes the 76.4% level at 0.9977. Alternatively, a move back below the 50% Fib at 0.9829 clears the way for a test of the 38.2% expansion at 0.9762.
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.