USD/CHF Technical Analysis – April High Held as Resistance
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Talking Points:
USD/CHF Technical Strategy: Flat
Support: 0.8896 (76.4% Fib exp.), 0.8859 (61.8% Fib exp.)
Resistance: 0.8952-56 (Apr 4 high, 100% Fib exp.), 0.9016 (123.6% Fib exp.)
The US Dollar rose against the Swiss Franc as expected after prices produced a bullish Piercing Line candlestick pattern. The pair is testing resistance in the 0.8952-56 area, marked by the 100% Fibonacci expansion and the April 4 high. A break upward on a daily closing basis exposes the 123.6% level at 0.9016. Near-term support is at 0.8896, the 76.4% Fib, with a turn below that targeting the 61.8% expansion at 0.8859.
Entering long at current levels seems premature from a tactical and a risk/respective perspective absent confirmation on a break above the April top. We will continue to stand aside for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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