USD/CHF Technical Analysis: Downswing Threat Remains

By DailyFx | Updated August 11, 2014 AAA

DailyFX.com -

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

Talking Points:

  • USD/CHF Technical Strategy: Flat
  • Support:0.9054, 0.9017, 0.8957
  • Resistance: 0.9110, 0.9189, 0.9268

The US Dollar is digesting recent gains below the 0.91 figure against the Swiss Franc, with negative RSI divergence warning a corrective pullback may be ahead. Near-term support is at 0.9054, the 14.6% Fibonacci retracement. A break below that on a daily closing basis exposes the 23.6% level at 0.9017. Alternatively, a reversal above the 76.4% Fib expansion at 0.9110 clears the way for a challenge of the 100% threshold at 0.9189.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/CHF Technical Analysis: Downswing Threat Remains

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    USD/CHF hits fresh 17-month high after SNB sets negative interest rates

  2. Forex News

    Swiss Franc Sinks as SNB Surprises with Negative Interest Rates

  3. Forex News

    USD/CHF Technical Analysis: Broken Wedge Floor Retested

  4. Forex News

    Forex Top Movers: The US Dollar extends rally as the Fed loops the loop

  5. Forex News

    USD/CHF oscillates as Yellen speaks

Trading Center