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Talking Points:

• USD/CHF Technical Strategy: Flat

• Support: 1.0119, 1.0059, 0.9962

• Resistance: 1.0214, 1.0273, 1.0370

The US Dollar may be carving out a top against the Swiss Franc as negative divergence warns of ebbing upside momentum. A daily close below the 14.6% Fibonacci retracementat 1.0119 exposes the 23.6% level at 1.0059. Alternatively, a turn above the 14.6% Fib expansion at 1.0214 opens the door for a test of the 23.6% threshold at 1.0273.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.

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Daily Chart - Created Using FXCM Marketscope

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

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