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USD/CHF Technical Analysis: Candle Setup Hints at Downturn

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Talking Points:

  • USD/CHF Technical Strategy: Flat

  • Support: 1.0119, 1.0059, 0.9962

  • Resistance: 1.0185, 1.0239, 1.0293

The US Dollar may turn lower against the Swiss Franc after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 1.0119, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 1.0059. Alternatively, a reversal above the 138.2% Fib at 1.0185 clears the way for a challenge of the 150% expansion at 1.0239.

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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USD/CHF Technical Analysis: Candle Setup Hints at Downturn
USD/CHF Technical Analysis: Candle Setup Hints at Downturn

Daily Chart - Created Using FXCM Marketscope

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


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