USD/CHF Technical Analysis: Selloff Pauses to Consolidate

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Talking Points:

  • USD/CHF Technical Strategy: Flat

  • Support: 0.9654, 0.9554, 0.9391

  • Resistance:0.9690, 0.9817, 0.9896

The US Dollar paused to digest losses having reversed downward against the Swiss Franc as expected. A daily close below the 14.6% Fibonacci retracementat 0.9654 exposes the 23.6% level at 0.9554. Alternatively, a reversal above wedge floor support-turned-resistance at 0.9700 clears the way for a test of the December 8 high at 0.9817.

The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now and wait for a more actionable opportunity to present itself.

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USD/CHF Technical Analysis: Selloff Pauses to Consolidate
USD/CHF Technical Analysis: Selloff Pauses to Consolidate

Daily Chart - Created Using FXCM Marketscope

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


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