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Talking Points:
– USD/CHF Technical Strategy: Flat
– Support: 0.9177, 0.9071, 0.8958
– Resistance: 0.9554, 0.9769, 0.9985
The US Dollar has been strengthening against the Swiss Franc, with buyers now targeting late May swing highs. Near-term resistance is at 0.9502-54 (23.6% Fibonacci expansion, trend line), with a break below on a daily closing basis potentially leading to the 38.2% level at 0.9769. Conversely, a drop below trend line support at 0.9177 could pave the way for a test of the May 7 low at 0.9071.
Risk/reward considerations suggest caution in going long with prices near resistance. However, the lack of a clear bearish reversal signal means it may be premature to go short. We will remain on the sidelines for now, waiting for a clearer opportunity to arise.
For more technical levels, you can add them directly to your charts with our Support/Resistance Wizard app.
USD/CHF Technical Analysis: May High in the Crosshairs
– Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends impacting the global currency markets. Learn forex trading with a free practice account and trading charts from FXCM.