To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8750 (38.2% Fib exp.), 0.8705 (50% Fib exp.)
- Resistance: 0.8863 (trend line)
The Swiss Franc continues to make headway against the US Dollar, with prices edging past the February 28 low at 0.8776. Sellers are now testing the 38.2% Fib expansion at 0.8750, with a break below that targeting the 50% level at 0.8705. Alternatively, a rebound back above 0.8776 sees resistance at a falling trend line set from late January, now at 0.8863.
Prices are too close to relevant support to justify a short trade from a risk/reward perspective. Furthermore, emerging positive RSI divergence hints selling pressure is ebbing and warns a turn higher may be around the corner. We will wait for confirmation of reversal on a daily close above trend line resistance to enter long.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com