Forex: USD/CHF Technical Analysis – Quiet Consolidation Continues

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Talking Points:

  • USD/CHF Technical Strategy: Flat

  • Support: 0.8986 (23.6% Fib exp.), 0.8954 (trend line)

  • Resistance: 0.9038 (38.2% Fib exp.), 0.9081 (50% Fib exp.)

Swiss Franc technical positioning is little-changed from yesterday, with prices treading water above 0.90 to the US Dollar. A daily close above support-turned-resistance at 0.9038, the 38.2% Fibonacci expansion, exposes the 50% level at 0.9081. Alternatively, a turn below support at 0.8986, the 23.6% Fib, targets a rising trend line set from mid-December (now at 0.8954).

Yesterday’s price action formed a Doji candle, pointing to indecision below resistance and hinting a move lower may be ahead. Confirmation is absent however, arguing against taking a short position. Meanwhile, taking a shot on the long side looks unattractive from a risk/reward perspective. We will hold off on taking a trade at current levels.

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dailyclassics_usd-chf_body_Picture_11.png, Forex: USD/CHF Technical Analysis – Quiet Consolidation Continues
dailyclassics_usd-chf_body_Picture_11.png, Forex: USD/CHF Technical Analysis – Quiet Consolidation Continues

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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