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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.

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USD/CHF Technical Analysis: Downswing Threat Remains

Daily Chart - Created Using FXCM Marketscope 2.0

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