USD/CHF Technical Analysis: Treading Water Below 0.98 Mark
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- USD/CHF Technical Strategy: Flat
- Support:0.9726, 0.9617, 0.9529
- Resistance: 0.9793, 0.9902, 0.9993
The US Dollar paused to digest losses after issuing the largest daily decline in over two months against the Swiss Franc. Near-term support is at 0.9726 (trend line, 23.6% Fibonacci retracement), with a break below that on a daily closing basis exposing the 38.2% level at 0.9617. Alternatively, a turn above the 14.6% Fib at 0.9793 opens the door for a challenge of the August 11 high at 0.9902.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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.