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- USD/CHF Technical Strategy: Flat
- Support:0.8973 (trend line), 0.8908 (38.2% Fib ret.)
- Resistance: 0.8990 (23.6% Fib exp.), 0.9036-39 (Jun 5 high, 38.2% Fib exp.)
The US Dollar is struggling to make headway above the 0.90 figure against Swiss Franc after breaking falling trend line resistance set from November 2013. Near-term resistance is at 0.8990, the 23.6% Fibonacci expansion, with a sustained push above that eyeing the 0.9036-39 area marked by the 38.2% level and the June 5 high. Alternatively, a turn back below the trend line (now at 0.8973) on a daily closing basis opens the door for a test of the 38.2% Fib retracementat 0.8908.
Risk/reward considerations argue against entering long with prices sitting squarely at resistance. On the other hand, taking up the short side seems premature absent a defined bearish reversal signal. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0