To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/CHF Technical Strategy: Flat
- Support: 0.8833 (channel top), 0.8806 (23.6% Fib ret.)
- Resistance: 0.8873 (38.2% Fib ret.), 0.8927 (50% Fib ret.)
The US Dollar advanced against the Swiss Francas expected, confirming a breakout with a push through falling channel resistance set from late January. Near-term resistance is now at 0.8873, the 38.2% Fibonacci retracement, with a break above targeting the 50% level at 0.8927. Alternatively, a reversal back below the channel top (now at 0.8833) eyes the 23.6% Fib at 0.8806.
Risk/ reward considerations argue against entering long with prices squarely at near-term resistance. On the other hand, the short side looks unattractive without an actionable reversal signal. With that in mind, we will continue to stand aside and wait for a more attractive setup to emerge.
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