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Talking Points:
– USD/CHF Technical Strategy: Flat
– Support: 0.8806 (23.6% Fib ret.), 0.8755 (Wedge top)
– Resistance: 0.8845-73 (channel top, 38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar began to recover against the Swiss Franc as expected, seemingly completing a falling wedge chart formation. An alternate interpretation of current positioning leaves open the possibility that a falling channel is the dominant pattern in play rather than the wedge setup.
Near-term resistance is in the 0.8845-73 area, marked by 38.2% Fibonacci retracement and the channel top. A break above that targets the 50% level at 0.8927. Alternatively, slipping back below the 23.6% Fib at 0.8806 would expose the wedge top at 0.87550. We will wait for confirmation on a daily close above the channel top to look for long trade opportunities.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Learn forex trading with a free practice account and trading charts from FXCM.