DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support:0.8908 (38.2% Fib ret.), 0.8869 (50% Fib ret.)
  • Resistance: 0.8977-90 (trend line, 23.6% Fib exp.), 0.9039 (38.2% Fib exp.)

The US Dollar bounced swiftly higher having found support above the 0.89 figure against the Swiss Franc. Prices are testing resistance at a falling trend line set from November 2013, a barrier reinforced by the 23.6% Fibonacci expansion at 0.8990. A daily close above the latter barrier exposes the 38.2% level at 0.9039. Near-term support is at 0.8908, the 38.2% Fib retracement, with a reversal beneath that clearing the way for a test of the 50% threshold at 0.8869.

Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a confirmed bearish reversal signal warns against taking up the short side. Wewill remain flat for now.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

USD/CHF Technical Analysis – Franc Back on the Defensive

Daily Chart - Created Using FXCM Marketscope 2.0

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.