USD/CHF Technical Analysis: Two-Month Support at Risk
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/CHF Technical Strategy: Flat
- Support:0.9726, 0.9617, 0.9529
- Resistance: 0.9793, 0.9902, 0.9998
The US Dollar fell the most in over two months against the Swiss Franc to test support capping losses since late June. A daily close below 0.9726 (trend line, 23.6% Fibonacci retracement) exposes the 38.2% level at 0.9617. Alternatively, a move above the 14.6% Fib at 0.9793 clears the way for a test of the August 11 high at 0.9902.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.